Smith AO Corporation (AOS)
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 | 809,600 | 458,400 | 428,800 | 379,400 | 362,000 | 715,400 | 730,300 | 716,300 | 682,000 | 653,900 | 625,200 | 560,500 | 503,200 | 463,900 | 439,800 | 485,700 | 529,100 | 566,300 | 585,300 | 599,700 |
| Total assets | US$ in thousands | 3,213,900 | 3,200,100 | 3,248,800 | 3,336,300 | 3,332,300 | 3,231,900 | 3,321,400 | 3,434,900 | 3,474,400 | 3,300,000 | 3,140,200 | 3,106,800 | 3,160,700 | 2,971,100 | 2,984,200 | 2,983,000 | 3,058,000 | 3,067,900 | 3,175,600 | 3,143,500 |
| Operating ROA | 25.19% | 14.32% | 13.20% | 11.37% | 10.86% | 22.14% | 21.99% | 20.85% | 19.63% | 19.82% | 19.91% | 18.04% | 15.92% | 15.61% | 14.74% | 16.28% | 17.30% | 18.46% | 18.43% | 19.08% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $809,600K ÷ $3,213,900K
= 25.19%
A.O. Smith Corp.'s operating return on assets (ROA) has shown a positive trend over the past eight quarters, indicating the company's ability to generate profits from its operational activities relative to its total assets. The operating ROA has steadily increased from 18.90% in Q1 2022 to 23.57% in Q4 2023, with occasional fluctuations but generally upward trajectory.
This improvement suggests that A.O. Smith Corp. has been effectively utilizing its assets to generate operating income. The consistently high operating ROA levels demonstrate the company's efficiency in generating profits from its core business operations.
Overall, the increasing trend in operating ROA reflects positively on A.O. Smith Corp.'s operational efficiency and profitability over the analyzed period, highlighting the company's ability to generate returns from its asset base.
Peer comparison
Dec 31, 2023