Allegheny Technologies Incorporated (ATI)
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 | 608,900 | 466,400 | 287,300 | 161,700 | 28,500 |
| Total assets | US$ in thousands | 5,230,600 | 4,985,100 | 4,445,600 | 4,285,200 | 4,034,900 |
| Operating ROA | 11.64% | 9.36% | 6.46% | 3.77% | 0.71% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $608,900K ÷ $5,230,600K
= 11.64%
Allegheny Technologies Incorporated's operating return on assets (ROA) has exhibited a positive trend over the years, indicating an improvement in the company's efficiency in generating earnings from its operating assets.
From December 31, 2020, where the operating ROA stood at 0.71%, the ratio increased steadily to 3.77% by December 31, 2021, signifying a notable enhancement in operating performance. This positive trend continued with further improvements to 6.46% by December 31, 2022, 9.36% by December 31, 2023, and ultimately reaching 11.64% by December 31, 2024.
The significant and consistent growth in operating ROA suggests that Allegheny Technologies Incorporated has been effectively utilizing its operational assets to generate higher returns. This indicates improved operational efficiency, better asset utilization, or potentially enhanced profitability from the company's core business activities.
Overall, the upward trajectory of the operating ROA reflects positively on Allegheny Technologies Incorporated's management of its operational assets, indicating a strengthening financial performance and potentially increased value creation for shareholders.