Chemours Co (CC)
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 | -245,000 | 772,000 | 676,000 | 367,000 | 348,000 |
| Total assets | US$ in thousands | 8,251,000 | 7,640,000 | 7,550,000 | 7,082,000 | 7,258,000 |
| Operating ROA | -2.97% | 10.10% | 8.95% | 5.18% | 4.79% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-245,000K ÷ $8,251,000K
= -2.97%
Chemours Co's operating return on assets (ROA) has fluctuated over the past five years. In 2023, the company experienced a negative operating ROA of -2.97%, indicating that its operating income generated from its assets was insufficient to cover the costs associated with those assets. This negative performance may raise concerns about the company's operational efficiency and profitability.
In the preceding years, Chemours Co exhibited a positive trend in its operating ROA, with 2022 showing a strong performance at 10.10%, significantly higher than the industry average. This suggests that the company was effective in generating operating income relative to its assets during that period.
The operating ROA for 2021 and 2020 were also favorable at 8.95% and 5.18% respectively, demonstrating a consistent ability to generate returns from its assets. This is a positive indicator of the company's operational effectiveness and asset utilization.
In 2019, Chemours Co achieved an operating ROA of 4.79%, albeit lower than the subsequent years, still indicating a reasonable performance in generating operating income compared to its assets.
Overall, while Chemours Co's operating ROA has shown variability in recent years, the company has demonstrated an ability to effectively utilize its assets to generate operating income. It is important for the company to address the negative operating ROA in 2023 and implement strategies to improve operational efficiency and profitability moving forward.
Peer comparison
Dec 31, 2023