Avantor Inc (AVTR)

Operating return on assets (Operating ROA)

		Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	715,600	611,500	696,400	764,900	830,500	1,054,400	1,130,200	1,092,400	1,053,800	1,012,900	972,200	962,800	902,800	814,700	706,800	654,100	620,100	572,600
Total assets	US$ in thousands	12,693,500	12,763,400	12,972,700	12,798,100	13,063,300	13,395,900	13,464,300	13,113,300	13,430,900	13,836,400	13,897,200	12,199,200	11,249,700	9,738,800	9,906,500	9,938,400	9,867,000	9,786,200	9,773,300	9,763,100
Operating ROA		5.64%	4.79%	5.37%	5.98%	6.36%	7.87%	8.39%	8.33%	7.85%	7.32%	7.00%	7.89%	8.03%	8.37%	7.13%	6.58%	6.28%	5.85%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $715,600K ÷ $12,693,500K
= 5.64%

Operating return on assets (operating ROA) is a financial ratio that measures a company's ability to generate profits from its assets used in its core operations. Looking at the trend of Avantor Inc's operating ROA over the past several quarters, we can see some fluctuations in the ratio.

The operating ROA for Avantor Inc has ranged from a low of 4.79% to a high of 8.39% over the periods covered. The ratio peaked at 8.39% in the first quarter of 2023 but has generally trended downwards since then. This may indicate a decline in the company's ability to generate operating profits relative to its asset base.

Despite the fluctuations, Avantor Inc's operating ROA has generally been above 5%, indicating that the company has been able to generate a positive return on its assets. A higher operating ROA suggests efficient utilization of assets to generate profits, while a lower ratio may signal inefficiencies in asset management or lower profitability from core operations.

It is important to consider the factors driving the changes in operating ROA, such as changes in revenue, expenses, or asset utilization, to gain a deeper understanding of the company's performance. Additionally, comparing Avantor Inc's operating ROA to industry benchmarks or its peers can provide further insights into its competitiveness and operational efficiency.