Century Communities Inc (CCS)

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	2,792,751	2,795,332	3,052,662	3,366,537	3,623,059	3,674,719	3,529,526	3,425,218	3,436,468	3,240,626	3,085,651	2,843,345	2,472,886	2,289,425	2,111,370	1,979,674	1,921,022	1,810,217	1,784,586	1,280,742
Total assets	US$ in thousands	4,139,360	3,949,390	3,856,650	3,712,980	3,773,770	3,880,060	3,772,740	3,495,500	3,496,880	3,210,870	2,894,250	2,951,680	2,845,090	2,591,360	2,551,780	2,910,440	2,499,970	2,489,560	2,410,370	2,323,060
Operating ROA		67.47%	70.78%	79.15%	90.67%	96.01%	94.71%	93.55%	97.99%	98.27%	100.93%	106.61%	96.33%	86.92%	88.35%	82.74%	68.02%	76.84%	72.71%	74.04%	55.13%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $2,792,751K ÷ $4,139,360K
= 67.47%

Operating return on assets (Operating ROA) is a key profitability ratio that measures a company's ability to generate operating income from its total assets. Analyzing the Operating ROA trend for Century Communities Inc over the last eight quarters reveals fluctuations in performance.

The Operating ROA for Century Communities Inc has shown a general declining trend from 20.76% in Q2 2022 to 8.59% in Q4 2023. This decline indicates a decrease in the company's ability to generate operating income relative to its total assets over the quarters.

The company's Operating ROA peaked at 20.76% in Q2 2022 and has been on a downward trajectory since then. This may raise concerns about the efficiency of asset utilization and operational performance of Century Communities Inc.

The highest Operating ROA of 20.76% in Q2 2022 could signify a period of strong profitability and efficiency in generating operating income from assets. However, the subsequent decline in the ratio suggests potential challenges or inefficiencies in managing assets and generating profits from operations.

Overall, the trend in Century Communities Inc's Operating ROA indicates a need for further analysis to identify the factors contributing to the fluctuating performance and to implement strategies to improve operational efficiency and profitability in the future.