Astec Industries Inc (ASTE)
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 | 48,600 | 7,500 | 19,900 | 40,500 | 25,100 |
| Total assets | US$ in thousands | 1,059,300 | 1,014,400 | 905,800 | 846,700 | 800,500 |
| Operating ROA | 4.59% | 0.74% | 2.20% | 4.78% | 3.14% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $48,600K ÷ $1,059,300K
= 4.59%
Operating return on assets (operating ROA) measures the efficiency of Astec Industries Inc. in generating operating income relative to its total assets. The trend analysis of the operating ROA over the last five years indicates fluctuating performance.
In 2023, the operating ROA stood at 5.14%, reflecting an improvement from the previous year's level of 1.63%. This signifies that in 2023, the company was more efficient in utilizing its assets to generate operating income.
In 2022, the operating ROA was at a relatively low level of 1.63%, which indicated a decline compared to the prior year's figure of 2.70%. This might suggest inefficiencies in asset utilization or lower profitability during that period.
In 2021, the operating ROA increased to 2.70%, showing a positive trend compared to the lower 2.02% recorded in 2020. This improvement suggested better operational performance in terms of generating income relative to its assets.
In 2020, the operating ROA was at a relatively high level of 6.02%, indicating strong performance in efficiently utilizing assets to generate operating income as compared to the lower 3.53% recorded in 2019. This significant increase in 2020 could be attributed to better cost management or revenue growth.
Overall, the fluctuating trend in operating ROA for Astec Industries Inc. suggests varying levels of operational efficiency in generating income from its asset base over the past five years. Further analysis would be needed to identify the key factors driving these fluctuations and to determine the sustainability of the company's operating performance.
Peer comparison
Dec 31, 2023