Black Hills Corporation (BKH)
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 | 472,700 | 455,200 | 409,429 | 428,303 | 406,042 |
| Total assets | US$ in thousands | 9,620,400 | 9,618,200 | 9,131,900 | 8,088,790 | 7,558,460 |
| Operating ROA | 4.91% | 4.73% | 4.48% | 5.30% | 5.37% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $472,700K ÷ $9,620,400K
= 4.91%
The operating return on assets (ROA) of Black Hills Corporation has shown a fluctuating trend over the past five years. In 2023, the operating ROA was 4.91%, which is slightly higher compared to 4.73% in 2022 but lower than the 5.30% reported in 2020 and 5.37% in 2019.
Although the operating ROA has been relatively stable around the 4-5% range, the downward trend from 2020 to 2023 may indicate potential challenges in efficiently utilizing assets to generate operating income.
It is essential for Black Hills Corporation to delve deeper into the factors impacting its operating ROA to identify opportunities for improvement in asset management and operational efficiency moving forward. The company should focus on strategies to optimize asset utilization to enhance profitability and sustainable growth.
Peer comparison
Dec 31, 2023