Avis Budget Group Inc (CAR)
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 | 4,423,000 | 3,191,000 | 3,913,000 | 2,131,000 | -529,000 |
| Total assets | US$ in thousands | 9,668,000 | 32,569,000 | 25,927,000 | 22,600,000 | 17,538,000 |
| Operating ROA | 45.75% | 9.80% | 15.09% | 9.43% | -3.02% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,423,000K ÷ $9,668,000K
= 45.75%
The operating return on assets (ROA) of Avis Budget Group Inc has shown a significant improvement over the past five years, reflecting the company's efficiency in generating profits from its assets.
At the end of 2020, the operating ROA was at a negative 3.02%, indicating that the company was not effectively utilizing its assets to generate operating income. However, by the end of 2021, the operating ROA had turned positive at 9.43%, suggesting improved operational performance and asset efficiency.
The trend continued positively into 2022, with the operating ROA increasing to 15.09%, indicating that the company was generating higher operating income relative to its assets. Although there was a slight decline in 2023 to 9.80%, the operating ROA remained at a healthy level, demonstrating the company's ability to effectively utilize its assets.
By the end of 2024, the operating ROA soared to 45.75%, marking a substantial improvement from the previous years and showcasing the company's exceptional performance in generating operating income from its assets.
Overall, Avis Budget Group Inc's operating return on assets has shown a positive trajectory, indicating improved operational efficiency and profitability over the five-year period.
Peer comparison
Dec 31, 2024