Astec Industries Inc (ASTE)
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 | 23,200 | 48,600 | 15,900 | 22,100 | 43,000 |
| Total assets | US$ in thousands | 1,043,600 | 1,059,300 | 1,014,400 | 911,300 | 848,200 |
| Operating ROA | 2.22% | 4.59% | 1.57% | 2.43% | 5.07% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $23,200K ÷ $1,043,600K
= 2.22%
The operating return on assets (ROA) for Astec Industries Inc has fluctuated over the five-year period from December 31, 2020, to December 31, 2024.
- In December 31, 2020, the operating ROA stood at 5.07%, indicating that the company generated $0.0507 in operating income for every $1 of assets it had.
- However, by December 31, 2021, the operating ROA declined to 2.43%, signaling a decrease in the company's efficiency in generating operating income from its assets.
- The trend continued as the operating ROA further dropped to 1.57% by December 31, 2022, reflecting potential challenges or inefficiencies in the company's operations.
- Subsequently, there was a notable improvement in December 31, 2023, where the operating ROA rose to 4.59%, suggesting better utilization of assets to generate operating profits.
- Lastly, by December 31, 2024, the operating ROA decreased to 2.22%, showcasing some volatility in the company's ability to generate operating income relative to its asset base.
In conclusion, the fluctuations in Astec Industries Inc's operating ROA indicate varying levels of efficiency in utilizing its assets to generate operating income over the five-year period. It is essential for the company to focus on maintaining a stable and efficient operating ROA to ensure sustainable profitability and operational performance.
Peer comparison
Dec 31, 2024