Century Communities Inc (CCS)

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	2,791,890	3,621,940	3,435,530	2,472,000	1,920,530
Total assets	US$ in thousands	4,139,360	3,773,770	3,496,880	2,845,090	2,499,970
Operating ROA		67.45%	95.98%	98.25%	86.89%	76.82%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $2,791,890K ÷ $4,139,360K
= 67.45%

Century Communities Inc's operating return on assets (ROA) has shown some fluctuations over the past five years. In 2023, the operating ROA was 8.59%, representing a decrease from the previous year's figure of 18.68%. This decline may raise concerns regarding the company's operational efficiency and profitability.

Comparing the 2023 operating ROA to the figures of 2021 and 2022, where it was relatively high at 18.84% and 18.68% respectively, it indicates a significant decline in the company's ability to generate profits from its operating assets.

However, when looking at the operating ROA in 2023 in comparison to 2020 and 2019, where it was 9.65% and 6.14% respectively, there is still an improvement in performance over the longer term.

Overall, Century Communities Inc's operating ROA has been somewhat volatile, with fluctuations across the years. It is crucial for the company to assess the reasons behind the recent decline in the operating ROA and take necessary steps to enhance operational efficiency and profitability in the future.