Avis Budget Group Inc (CAR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,549,000 | 1,792,000 | 2,270,000 | 2,692,000 | 2,949,000 | 2,667,000 | 2,248,000 | 1,698,000 | 998,000 | -2,270,000 | -1,953,000 | -2,190,000 | -2,397,000 | 3,047,000 | 2,153,000 | 1,974,000 | 2,052,000 | 1,940,000 | 1,970,000 | 1,908,000 |
| Total assets | US$ in thousands | 32,569,000 | 32,304,000 | 31,395,000 | 27,388,000 | 25,927,000 | 25,197,000 | 26,095,000 | 23,573,000 | 22,600,000 | 21,610,000 | 22,013,000 | 18,609,000 | 17,538,000 | 19,596,000 | 21,690,000 | 23,552,000 | 23,126,000 | 23,108,000 | 24,455,000 | 22,902,000 |
| Operating ROA | 4.76% | 5.55% | 7.23% | 9.83% | 11.37% | 10.58% | 8.61% | 7.20% | 4.42% | -10.50% | -8.87% | -11.77% | -13.67% | 15.55% | 9.93% | 8.38% | 8.87% | 8.40% | 8.06% | 8.33% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,549,000K ÷ $32,569,000K
= 4.76%
The operating return on assets (operating ROA) for Avis Budget Group Inc has shown a declining trend over the past eight quarters. In Q1 2022, the operating ROA was at its highest level of 16.62%, indicating that the company was generating $16.62 in operating income for every $100 of assets. However, since then, the operating ROA has steadily decreased, reaching its lowest level of 9.12% in Q4 2023.
This decreasing trend suggests that the company may be experiencing challenges in effectively utilizing its assets to generate operating income. A declining operating ROA could indicate inefficiencies in the company's operations, such as rising operating expenses or decreasing revenue generation. It may also signal a need for improvements in asset utilization or a reassessment of the company's operational efficiency.
Overall, the declining trend in Avis Budget Group Inc's operating ROA warrants further investigation and analysis to identify the underlying factors contributing to this trend and to develop strategies to improve the company's operating performance and asset utilization in the future.
Peer comparison
Dec 31, 2023