Bio-Rad Laboratories Inc (BIO)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	269,000	337,796	482,616	489,430	410,957
Total assets	US$ in thousands	9,364,100	12,299,100	13,501,700	17,775,800	12,972,600
Operating ROA		2.87%	2.75%	3.57%	2.75%	3.17%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $269,000K ÷ $9,364,100K
= 2.87%

Operating Return on Assets (ROA) is a key financial metric that reveals how efficiently a company generates profits from its assets used in its operations. Analyzing the data provided for Bio-Rad Laboratories Inc over the period from December 31, 2020, to December 31, 2024, we observe fluctuations in the company's operating ROA.

- In December 2020, Bio-Rad Laboratories Inc's operating ROA was 3.17%, indicating that the company generated $0.0317 in operating income for every dollar of assets employed in its operations.
- By December 2021, the operating ROA had decreased to 2.75%, suggesting a slight decline in the company's efficiency in generating operating income from its assets.
- Moving to December 2022, we see a notable improvement in Bio-Rad's operating ROA, which increased to 3.57%, indicating enhanced profitability relative to asset utilization.
- However, in December 2023, the operating ROA reverted to 2.75%, the same level as in 2021, potentially signaling challenges in maintaining the initial improvement seen in 2022.
- Finally, by December 2024, Bio-Rad's operating ROA increased slightly to 2.87%, indicating a modest recovery in profitability per dollar of assets compared to the previous year.

Overall, the fluctuations in Bio-Rad Laboratories Inc's operating ROA suggest varying levels of efficiency in utilizing its assets to generate operating income during the period under review. It is essential for the company to sustain or improve its operating ROA over time to demonstrate consistent operational efficiency and profitability.