Avient Corp (AVNT)

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	196,800	154,100	160,400	198,200	243,300	293,000	305,200	313,200	331,400	346,300	327,000	256,900	189,300	144,800	154,400	162,500	156,800	166,500	172,100	175,600
Total assets	US$ in thousands	5,968,500	5,789,700	6,051,800	6,111,200	6,085,000	6,307,100	5,043,600	5,047,000	4,997,200	5,011,000	5,047,400	4,909,400	4,870,500	4,709,900	4,337,000	3,742,700	3,273,300	2,946,200	2,930,600	2,961,800
Operating ROA		3.30%	2.66%	2.65%	3.24%	4.00%	4.65%	6.05%	6.21%	6.63%	6.91%	6.48%	5.23%	3.89%	3.07%	3.56%	4.34%	4.79%	5.65%	5.87%	5.93%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $196,800K ÷ $5,968,500K
= 3.30%

Avient Corp's operating return on assets (operating ROA) has shown a declining trend over the past eight quarters. The operating ROA decreased from 7.72% in Q1 2022 to 3.30% in Q4 2023. This indicates a decrease in the company's ability to generate operating income from its assets over time.

The operating ROA peaked at 8.14% in Q2 2022 but has since been on a downward trajectory. The consecutive declines from Q2 2022 to Q4 2023 may suggest challenges in efficiently utilizing the company's assets to generate profits from its core operations.

A lower operating ROA could be a cause for concern as it reflects a decrease in the company's profitability relative to its asset base. Management may need to assess the efficiency of their operations and make strategic adjustments to improve the company's profitability and return on assets going forward.