ArcBest Corp (ARCB)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	172,619	394,526	280,986	98,278	63,770
Total assets	US$ in thousands	2,485,090	2,494,290	2,112,680	1,779,010	1,651,210
Operating ROA		6.95%	15.82%	13.30%	5.52%	3.86%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $172,619K ÷ $2,485,090K
= 6.95%

The operating return on assets (operating ROA) for ArcBest Corp has fluctuated over the past five years, with a trend of improvement overall. In 2019, the operating ROA was 3.86%, showing a relatively low profitability relative to assets. However, there was a significant increase in 2020 to 5.52%, indicating an enhancement in operational efficiency in generating profits from its assets.

Subsequently, in 2021, the operating ROA further improved to 13.30%, demonstrating a substantial increase in the company's ability to generate operating income relative to its total assets. This improvement was followed by another positive trend in 2022, reaching 16.01%, which suggests a continued focus on efficiency and profitability in operations.

However, in 2023, there was a slight decline in the operating ROA to 6.95%, although it still remained higher compared to the 2019 and 2020 levels. This decrease may indicate some challenges or changes in the company's operations during that year.

Overall, the varying levels of operating ROA reflect ArcBest Corp's performance in effectively utilizing its assets to generate operating income. The company has shown a general positive trend in enhancing operational efficiency and profitability over the past five years, with some fluctuations in the most recent year. Continued monitoring and analysis of this ratio will be essential to evaluating the company's financial performance and efficiency in utilizing its assets effectively.