AdvanSix Inc (ASIX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -51,843 | 1,978 | 27,416 | 73,875 | 115,891 | 104,054 | 154,342 | 127,705 | 86,766 | 142,748 | 87,692 | 48,181 | 27,120 | -10,628 | -475 | 5,037 | 16,998 | 55,987 | 53,466 | 73,391 |
| Total assets | US$ in thousands | 1,496,020 | 1,476,450 | 1,467,010 | 1,448,820 | 1,495,330 | 1,455,530 | 1,483,260 | 1,457,120 | 1,312,000 | 1,290,360 | 1,245,320 | 1,242,780 | 1,263,410 | 1,235,130 | 1,286,000 | 1,263,310 | 1,235,970 | 1,211,820 | 1,162,890 | 1,123,770 |
| Operating ROA | -3.47% | 0.13% | 1.87% | 5.10% | 7.75% | 7.15% | 10.41% | 8.76% | 6.61% | 11.06% | 7.04% | 3.88% | 2.15% | -0.86% | -0.04% | 0.40% | 1.38% | 4.62% | 4.60% | 6.53% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-51,843K ÷ $1,496,020K
= -3.47%
Operating Return on Assets (Operating ROA) measures how efficiently a company generates operating income relative to its total assets. AdvanSix Inc's Operating ROA has shown a declining trend over the past quarters, decreasing from 15.16% in Q4 2022 to 4.65% in Q4 2023. This indicates a decrease in the company's ability to generate operating income from its assets over this period.
The highest Operating ROA was observed in Q2 2022 at 17.60%, suggesting that the company was most efficient in utilizing its assets to generate operating income during that quarter. However, since then, there has been a downward trend in Operating ROA, which may raise concerns about the company's operational efficiency and asset utilization.
The decline in Operating ROA could be attributed to various factors such as decreasing profitability, inefficient asset utilization, or increasing asset base without corresponding growth in operating income. Investors and stakeholders may need to closely monitor AdvanSix Inc's operating performance and asset management strategies to assess its long-term profitability and efficiency.
Peer comparison
Dec 31, 2023