American Axle & Manufacturing (AXL)

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	146,600	243,900	240,600	-396,000	-301,600
Total assets	US$ in thousands	5,356,300	5,469,400	5,635,700	5,916,300	6,644,600
Operating ROA		2.74%	4.46%	4.27%	-6.69%	-4.54%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $146,600K ÷ $5,356,300K
= 2.74%

American Axle & Manufacturing Holdings Inc's operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA stands at 3.21%, a decrease compared to the previous year (5.01% in 2022) and significantly lower than the highest point reached in 2019 (6.66%). This indicates that the company's ability to generate operating income from its assets has slightly deteriorated in 2023. Further analysis is required to identify the factors contributing to this decline and assess the company's operational efficiency and asset utilization strategies.