Avis Budget Group Inc (CAR)
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 | 1,548,000 | 2,948,000 | 1,235,000 | -1,095,000 | -406,000 |
| Total assets | US$ in thousands | 32,569,000 | 25,927,000 | 22,600,000 | 17,538,000 | 23,126,000 |
| Operating ROA | 4.75% | 11.37% | 5.46% | -6.24% | -1.76% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,548,000K ÷ $32,569,000K
= 4.75%
Operating ROA is a key financial metric that indicates the efficiency of Avis Budget Group Inc in generating operating profits from its assets. The trend analysis of Avis Budget Group Inc's operating ROA over the past five years shows fluctuations in its performance. In 2023, the operating ROA stood at 9.12%, reflecting a decrease from the previous year's level of 16.62%. Despite the decline, the company maintains a positive operating ROA, indicating that it is still able to generate operating income from its assets.
In 2022, Avis Budget Group Inc demonstrated strong performance with an operating ROA of 16.62%, marking a significant improvement from the prior year. This suggests that the company efficiently utilized its assets to generate operating profits during this period.
The operating ROA for 2021 was 10.81%, showing a moderate increase compared to the previous year. This indicates that Avis Budget Group Inc continued to enhance its operational efficiency in utilizing its assets to generate operating income.
In 2020, the company experienced a negative operating ROA of -1.58%, which implies that its operating income was insufficient to cover the assets employed during the year. This could be a result of operational challenges or inefficiencies during this period.
Back in 2019, Avis Budget Group Inc achieved an operating ROA of 3.94%, indicating an improvement from the previous year. This suggests that the company effectively managed its assets to generate operating profit, although at a lower rate compared to subsequent years.
Overall, the analysis of Avis Budget Group Inc's operating ROA demonstrates varying levels of operational efficiency and profitability over the past five years, highlighting the importance of continuous monitoring and improvement in asset utilization for sustainable financial performance.
Peer comparison
Dec 31, 2023