Axalta Coating Systems Ltd (AXTA)
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 | 587,500 | 423,200 | 462,400 | 305,500 | 488,200 |
| Total assets | US$ in thousands | 7,272,100 | 7,059,200 | 7,217,200 | 7,157,200 | 6,818,000 |
| Operating ROA | 8.08% | 6.00% | 6.41% | 4.27% | 7.16% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $587,500K ÷ $7,272,100K
= 8.08%
Axalta Coating Systems Ltd's operating return on assets (operating ROA) has shown variability over the past five years. The operating ROA increased from 7.16% in 2019 to 8.08% in 2023, indicating an improvement in the company's ability to generate operating income from its assets. This suggests that Axalta Coating Systems Ltd has become more efficient in utilizing its assets to generate operating profits.
In 2020, the operating ROA was 4.27%, which was lower compared to the previous year. However, the company improved its operating performance in the subsequent years, with operating ROA reaching 6.41% in 2021 and further increasing to 6.00% in 2022.
Overall, the trend in Axalta Coating Systems Ltd's operating ROA shows a positive trajectory, with the company exhibiting improvements in its operational efficiency and profitability over the analyzed period. This indicates a favorable performance in terms of generating operating income relative to its assets, which is a key indicator of the company's operational effectiveness.
Peer comparison
Dec 31, 2023