AdvanSix Inc (ASIX)
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 | 58,913 | 69,550 | 228,572 | 190,139 | 62,825 |
| Total assets | US$ in thousands | 1,594,920 | 1,496,020 | 1,495,330 | 1,312,000 | 1,263,410 |
| Operating ROA | 3.69% | 4.65% | 15.29% | 14.49% | 4.97% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $58,913K ÷ $1,594,920K
= 3.69%
The operating return on assets (Operating ROA) for AdvanSix Inc has shown fluctuations over the years as per the provided data. In December 31, 2020, the Operating ROA was 4.97%, indicating the company generated approximately 4.97 cents of operating income for every dollar of assets.
The subsequent years witnessed significant improvements in the Operating ROA, reaching 14.49% by December 31, 2021, and further increasing to 15.29% by December 31, 2022. These higher percentages suggest that the company efficiently utilized its assets to generate operating income during these periods.
However, a decline was observed in the Operating ROA in the later years, dropping to 4.65% by December 31, 2023, and further declining to 3.69% by December 31, 2024. This decrease may indicate challenges in maintaining or improving profitability relative to the size of the asset base during these years.
Overall, fluctuations in the Operating ROA for AdvanSix Inc reflect changes in operational efficiency and asset utilization over the years, impacting the company's ability to generate income from its assets effectively.
Peer comparison
Dec 31, 2024