Smith AO Corporation (AOS)
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 | 707,700 | 745,500 | 362,000 | 682,000 | 503,200 |
| Total assets | US$ in thousands | 3,240,000 | 3,213,900 | 3,332,300 | 3,474,400 | 3,160,700 |
| Operating ROA | 21.84% | 23.20% | 10.86% | 19.63% | 15.92% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $707,700K ÷ $3,240,000K
= 21.84%
Smith AO Corporation's operating return on assets (operating ROA) has shown fluctuations over the past five years, ranging from 10.86% to 23.20%. The trend indicates that the company's ability to generate operating profits from its assets has varied significantly.
In December 2020, the operating ROA was 15.92%, showing a moderate level of return generated from the company's assets. This percentage increased to 19.63% by the end of December 2021, indicating an improvement in profitability.
However, in December 2022, the operating ROA dropped to 10.86%, suggesting a decrease in the company's ability to generate profits from its assets. This decline could be attributed to various factors such as increased operating expenses, lower sales revenue, or inefficient asset utilization.
The trend reversed in December 2023, with the operating ROA shooting up to 23.20%, signifying a substantial improvement in profitability and efficiency in asset management. This significant surge in operating ROA indicates that the company was able to generate higher operating profits relative to its asset base.
By December 2024, Smith AO Corporation maintained a strong performance with an operating ROA of 21.84%. This figure is slightly below the peak of 23.20% but still indicates that the company is effectively utilizing its assets to generate operating profits.
Overall, the fluctuating trend in Smith AO Corporation's operating ROA suggests varying levels of efficiency and profitability in utilizing its assets over the past five years. It would be important for stakeholders to further investigate the underlying reasons for these fluctuations to assess the company's operational performance and financial health.
Peer comparison
Dec 31, 2024