Api Group Corp (APG)
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 | 484,000 | 359,000 | 162,000 | 136,000 | 31,000 |
| Total assets | US$ in thousands | 8,152,000 | 7,590,000 | 8,091,000 | 5,159,000 | 4,065,000 |
| Operating ROA | 5.94% | 4.73% | 2.00% | 2.64% | 0.76% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $484,000K ÷ $8,152,000K
= 5.94%
The operating return on assets (ROA) of Api Group Corp demonstrates a generally positive trend over the specified period from December 31, 2020, through December 31, 2024. In 2020, the operating ROA was modest at 0.76%, indicating relatively low efficiency in generating operating income from the company's asset base. The subsequent year, 2021, saw a notable improvement, with the operating ROA rising to 2.64%, suggesting enhanced operational efficiency and better utilization of assets to generate operating earnings.
However, in 2022, the operating ROA experienced a decline to 2.00%. This decrease could reflect operational challenges, shifts in business performance, or increased asset base that did not proportionally contribute to operating income. Despite this dip, the overall trajectory remains upward when viewed over the longer term.
By 2023, the operating ROA increased significantly to 4.73%, more than doubling the previous year's figure, which indicates a substantial improvement in operational efficiency and profitability relative to assets. This upward movement continued into 2024, with the operating ROA reaching 5.94%, the highest level within the analyzed period. The increase signifies ongoing improvements in the company's ability to generate operating income from its assets, reflecting effective management and operational strategies.
Overall, the trend of Api Group Corp's operating ROA from 2020 to 2024 exhibits growth, with marked acceleration in the latter years. The steady increase suggests that the company has been successful in enhancing its operational efficiency and asset utilization capabilities, positioning it for potentially more sustainable profitability and operational strength in the near future.
Peer comparison
Dec 31, 2024