Brinks Company (BCO)

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	425,200	466,000	387,800	378,700	361,300	363,900	378,600	355,400	354,700	321,100	323,300	249,000	213,500	174,900	151,000	204,600	236,800	244,700	259,200	268,300
Total assets	US$ in thousands	6,601,800	6,264,800	6,411,400	6,253,100	6,366,000	5,933,400	5,823,100	5,750,400	5,566,700	5,552,900	5,578,400	5,190,500	5,135,600	4,903,100	4,771,200	3,800,900	3,763,800	3,702,600	3,732,400	3,602,000
Operating ROA		6.44%	7.44%	6.05%	6.06%	5.68%	6.13%	6.50%	6.18%	6.37%	5.78%	5.80%	4.80%	4.16%	3.57%	3.16%	5.38%	6.29%	6.61%	6.94%	7.45%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $425,200K ÷ $6,601,800K
= 6.44%

The operating return on assets (ROA) for Brink's Co. has shown variability over the past eight quarters, ranging from a low of 5.79% in Q1 2022 to a high of 7.60% in Q3 2023. The company's operating ROA has generally been increasing over the past two years, with a steady uptrend from Q1 2022 to Q3 2023. This indicates that Brink's Co. has been improving its efficiency in generating profit from its assets over time.

A higher operating ROA suggests that the company is effectively utilizing its assets to generate operating profits, which is a positive indicator of operational efficiency. The improvement in operating ROA over the quarters could be attributed to effective cost management, revenue growth, or an optimized asset structure.

However, it is worth noting that the operating ROA experienced some fluctuations, with minor decreases in Q4 2023 compared to the previous quarter. While these fluctuations are within a reasonable range, they could be indicative of changing market conditions, seasonal factors, or other operational challenges faced by Brink's Co.

Overall, the trend of increasing operating ROA over the past two years is a positive sign of improved asset utilization and operational performance. Monitoring this ratio over time can provide valuable insights into the company's efficiency and profitability.