The Andersons Inc (ANDE)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 70,014 | -1,639 | 12,792 | 19,864 | 90,518 | 3,882,482 | 3,837,916 | 3,778,902 | 3,783,354 | 2,508,954 | 2,504,610 | 2,457,772 | 2,423,316 | 48,375 | 78,382 | 147,262 | 185,507 | 146,110 | 131,965 | 108,776 |
| Total assets | US$ in thousands | 3,855,010 | 3,588,100 | 3,570,050 | 4,102,040 | 4,608,000 | 4,418,620 | 4,737,180 | 5,142,940 | 4,569,220 | 3,708,140 | 4,049,090 | 4,266,740 | 4,272,120 | 3,411,610 | 3,303,990 | 3,752,690 | 3,900,740 | 3,284,450 | 3,571,860 | 3,660,250 |
| Operating ROA | 1.82% | -0.05% | 0.36% | 0.48% | 1.96% | 87.87% | 81.02% | 73.48% | 82.80% | 67.66% | 61.86% | 57.60% | 56.72% | 1.42% | 2.37% | 3.92% | 4.76% | 4.45% | 3.69% | 2.97% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $70,014K ÷ $3,855,010K
= 1.82%
To analyze Andersons Inc.'s operating return on assets (operating ROA) based on the provided data, we observe fluctuations in the ratio over the eight quarters presented. The operating ROA ranged from a low of 3.18% in Q1 2022 to a high of 6.54% in Q4 2023, indicating variability in the company's profitability relative to its assets.
The trend shows an overall improvement in operating ROA over the quarters, with the ratio generally increasing from 4.60% in Q2 2022 to 6.54% in Q4 2023. This suggests that the company has been generating more operating income from its assets over time, reflecting positively on its operational efficiency and effectiveness in utilizing its resources to generate profits.
The significant improvement in operating ROA from Q1 2022 to Q4 2023 by 3.36 percentage points indicates that Andersons Inc. has been able to enhance its operational performance and efficiency significantly within a relatively short period.
However, it is important to note that despite the positive trend in operating ROA, fluctuations are observed in some quarters, such as the decrease in Q3 2023 compared to Q2 2023. These fluctuations may indicate periodic challenges or changes in the company's operations that impacted its profitability relative to its assets.
Overall, the improving trend in Andersons Inc.'s operating ROA signals a positive trajectory for the company's operational profitability and efficiency, but the company should continue to monitor and manage its operational performance to sustain and further enhance its return on assets in the future.
Peer comparison
Dec 31, 2023