Arch Resources Inc (ARCH)
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 | 548,892 | 1,096,250 | 343,786 | -340,764 | 236,076 |
| Total assets | US$ in thousands | 2,484,170 | 2,433,110 | 2,117,160 | 1,722,470 | 1,867,760 |
| Operating ROA | 22.10% | 45.06% | 16.24% | -19.78% | 12.64% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $548,892K ÷ $2,484,170K
= 22.10%
The operating return on assets (operating ROA) of Arch Resources Inc has fluctuated over the past five years, as indicated by the data provided.
In 2023, the operating ROA was 22.10%, reflecting a significant decrease from the previous year's level of 45.06%. This decline suggests that the company's operating profit generated from its assets decreased compared to the previous year.
The sharp increase in operating ROA in 2022 to 45.06% indicates improved operational efficiency and profitability, showcasing effective asset utilization during that year.
In 2021, the operating ROA was 16.24%, showing a moderate return compared to 2022. This suggests that the company could have faced some challenges in generating operating income from its assets during that period.
A notable negative operating ROA of -19.78% in 2020 indicates that the company experienced operating losses relative to its asset base. This could be attributed to factors such as decreased revenues, increased operating expenses, or impairment charges during that year.
Finally, in 2019, the operating ROA was 12.64%, indicating a positive return on assets generated through operations. This return was lower than in 2022 but still represented a reasonable level of profitability.
Overall, the analysis of Arch Resources Inc's operating ROA highlights the company's varying levels of operational efficiency and profitability over the past five years, demonstrating both strengths and challenges in utilizing its assets effectively to generate operating income.
Peer comparison
Dec 31, 2023