The Andersons Inc (ANDE)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 71,017 | 92,600 | 21,861 | -137,227 | 81,050 |
| Total assets | US$ in thousands | 3,855,010 | 4,608,000 | 4,569,220 | 4,272,120 | 3,900,740 |
| Operating ROA | 1.84% | 2.01% | 0.48% | -3.21% | 2.08% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $71,017K ÷ $3,855,010K
= 1.84%
Andersons Inc.'s operating return on assets (operating ROA) has shown a positive trend over the five-year period from 2019 to 2023. The operating ROA increased from 1.89% in 2019 to 6.54% in 2023, indicating a consistent improvement in the company's ability to generate operating income relative to its total assets.
This increase in operating ROA suggests that Andersons Inc. has become more efficient in utilizing its assets to generate operating profits. The company's performance in 2023 is notably strong compared to the previous years, with a significant improvement in profitability.
Overall, the increasing trend in operating ROA is a positive indicator of Andersons Inc.'s operational efficiency and financial health, reflecting the company's ability to generate earnings from its assets over the years. Potential factors contributing to this improvement could include effective cost management, operational improvements, strategic investments, or a more streamlined asset base.
Peer comparison
Dec 31, 2023