AdvanSix Inc (ASIX)
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 | -52,418 | 114,947 | 86,006 | 49,685 | 29,346 |
| Total assets | US$ in thousands | 1,496,020 | 1,495,330 | 1,312,000 | 1,263,410 | 1,235,970 |
| Operating ROA | -3.50% | 7.69% | 6.56% | 3.93% | 2.37% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-52,418K ÷ $1,496,020K
= -3.50%
AdvanSix Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA decreased to 4.65% from 15.16% in 2022, indicating a significant decline in the company's ability to generate operating profits from its assets. This decrease follows a trend that began in 2022, where the operating ROA also dropped slightly from 14.57% in 2021. Comparing these recent years to 2020 and 2019, there was a slight increase in 2022 but a general downward trend since 2020 when the operating ROA was 4.98%.
The decline in operating ROA raises concerns about AdvanSix Inc's operational efficiency and effectiveness in utilizing its assets to generate profits. It suggests a potential decrease in the company's operating performance and efficiency in converting assets into earnings. Further analysis of the company's operational strategies, cost management, revenue generation, and asset utilization may be necessary to address the downward trend in operating ROA and identify opportunities for improvement in the future.
Peer comparison
Dec 31, 2023