The Andersons Inc (ANDE)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 82,950 | 71,017 | 92,600 | 21,861 | -137,227 |
| Total assets | US$ in thousands | 4,121,310 | 3,855,010 | 4,608,000 | 4,569,220 | 4,272,120 |
| Operating ROA | 2.01% | 1.84% | 2.01% | 0.48% | -3.21% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $82,950K ÷ $4,121,310K
= 2.01%
The operating return on assets (Operating ROA) for The Andersons Inc has shown a mixed trend over the past five years. At December 31, 2020, the company's Operating ROA was at a negative 3.21%, indicating that the company's operating income was insufficient to cover its assets for that year.
However, there has been a significant improvement in the company's Operating ROA since then. By December 31, 2021, the Operating ROA had increased to 0.48%, showing a positive turn in the company's profitability in relation to its assets.
The positive trend continued in the subsequent years as the Operating ROA stood at 2.01% by December 31, 2022, and then slightly decreased to 1.84% by December 31, 2023. Finally, as of December 31, 2024, the Operating ROA returned to 2.01%, indicating that the company was generating a decent operating income in relation to its assets that year.
Overall, the improvement in The Andersons Inc's Operating ROA from negative to positive values over the years suggests that the company has become more efficient in utilizing its assets to generate operating income. This positive trend indicates a healthier financial performance for the company, reflecting better management of assets and operations.
Peer comparison
Dec 31, 2024