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.