Aptiv PLC (APTV)
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 | 1,842,000 | 1,559,000 | 1,263,000 | 1,189,000 | 2,118,000 |
| Total assets | US$ in thousands | 23,458,000 | 24,427,000 | 21,884,000 | 18,007,000 | 17,522,000 |
| Operating ROA | 7.85% | 6.38% | 5.77% | 6.60% | 12.09% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,842,000K ÷ $23,458,000K
= 7.85%
The operating return on assets (operating ROA) of Aptiv PLC has shown a declining trend from 12.09% as of December 31, 2020, to 7.85% as of December 31, 2024. This indicates that the company's ability to generate profits from its assets used in operations has decreased over this period.
The decreasing trend in operating ROA could be a result of various factors such as increasing operating expenses, inefficient asset utilization, or a decline in operating income. It is crucial for the company to closely monitor and address the factors impacting its operating ROA to enhance operational efficiency and overall profitability.
Overall, Aptiv PLC's declining operating ROA implies a need for management to assess and potentially optimize the utilization of its assets to improve profitability in the future. This trend should be closely monitored to ensure sustainable and long-term financial performance.
Peer comparison
Dec 31, 2024