Barnes Group Inc (B)
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 | 89,000 | 57,119 | 150,000 | 123,400 | 236,448 |
| Total assets | US$ in thousands | 3,308,010 | 2,413,700 | 2,576,800 | 2,676,200 | 2,738,300 |
| Operating ROA | 2.69% | 2.37% | 5.82% | 4.61% | 8.63% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $89,000K ÷ $3,308,010K
= 2.69%
Barnes Group Inc.'s operating return on assets (operating ROA) has shown a decreasing trend over the past five years. The operating ROA decreased from 8.63% in 2019 to 2.69% in 2023. This downward trend indicates that the company's operating income generated from its assets has been declining over the years.
The declining operating ROA could suggest that Barnes Group Inc. is facing challenges in efficiently utilizing its assets to generate operating income. This may be attributed to various factors such as increasing operating expenses, lower sales volumes, or inefficiencies in asset management.
It is essential for Barnes Group Inc. to closely monitor its operating ROA and identify the underlying reasons for the decrease. By improving operational efficiency, reducing costs, and enhancing asset utilization, the company may be able to reverse the decreasing trend in operating ROA and enhance its overall financial performance.
Peer comparison
Dec 31, 2023