Allegheny Technologies Incorporated (ATI)
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 | 466,400 | 287,300 | 117,600 | -1,302,700 | 366,300 |
| Total assets | US$ in thousands | 4,985,100 | 4,445,600 | 4,285,200 | 4,034,900 | 5,634,600 |
| Operating ROA | 9.36% | 6.46% | 2.74% | -32.29% | 6.50% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $466,400K ÷ $4,985,100K
= 9.36%
The operating return on assets (operating ROA) for ATI Inc has shown a positive trend over the five-year period from 2019 to 2023. The operating ROA increased from 6.39% in 2019 to 9.52% in 2023, reflecting an improvement in the company's ability to generate operating profits relative to its total assets.
The operating ROA was relatively stable between 2020 and 2022, ranging from 2.10% to 9.37%. However, there was a significant increase in 2023, reaching the highest level in the five-year period. This may indicate improved operational efficiency, cost control, or increased revenue generating capacity during the most recent year.
Overall, the increasing trend in operating ROA suggests that ATI Inc has been utilizing its assets more effectively to generate operating profits, which is a positive indicator for the company's financial performance and efficiency in utilizing its resources.