Peabody Energy Corp (BTU)
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 | 1,074,700 | 1,381,600 | 432,200 | -1,728,300 | 61,700 |
| Total assets | US$ in thousands | 5,962,100 | 5,610,800 | 4,949,800 | 4,667,100 | 6,542,800 |
| Operating ROA | 18.03% | 24.62% | 8.73% | -37.03% | 0.94% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,074,700K ÷ $5,962,100K
= 18.03%
Peabody Energy Corp's operating return on assets (ROA) has exhibited significant fluctuations over the past five years. In 2023, the company's operating ROA stood at 18.03%, showing a decrease from the previous year's level of 24.62%. Despite the decline, the operating ROA remained positive, indicating that Peabody Energy generated a reasonable return from its operating activities relative to its assets in 2023.
Comparing to 2021, where the operating ROA was at 8.73%, the performance in 2023 represents a notable improvement. Furthermore, the significant recovery from the negative operating ROA of -37.03% in 2020 is particularly noteworthy. This suggests that Peabody Energy has made significant operational improvements to enhance its profitability and efficiency in the intervening years.
While the 2023 operating ROA of 18.03% is positive, it is essential to note that it remains below the levels seen in 2022. This may prompt investors and stakeholders to assess the factors contributing to this decline and evaluate the company's strategies to sustain or improve its operating profitability in the coming years.
Overall, the trend in Peabody Energy Corp's operating ROA reflects a mix of fluctuations and improvements in efficiency and profitability over the past five years. Continued monitoring of the company's operational performance and strategic initiatives will be crucial to understanding its ability to generate returns from its assets effectively.
Peer comparison
Dec 31, 2023