Constellation Energy Corp (CEG)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 4,352,000 1,610,000 -292,000 -177,000 1,182,000
Total assets US$ in thousands 52,926,000 50,758,000 46,909,000 48,086,000 48,094,000
Operating ROA 8.22% 3.17% -0.62% -0.37% 2.46%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $4,352,000K ÷ $52,926,000K
= 8.22%

Constellation Energy Corp's operating return on assets (Operating ROA) has fluctuated over the years. In December 31, 2020, the company had an Operating ROA of 2.46%, indicating that for every dollar of assets, the company generated a profit of 2.46 cents from its operations.

However, by December 31, 2021, the Operating ROA dropped to -0.37%, signifying that the company incurred an operating loss relative to its assets. This negative figure may suggest inefficiencies or challenges in managing the company's operating activities.

The trend continued in December 31, 2022, with a further decline in Operating ROA to -0.62%, suggesting a continued struggle in generating profits from its operational assets.

In December 31, 2023, there was a notable improvement in Constellation Energy Corp's Operating ROA, reaching 3.17%. This increase indicates that the company was able to enhance its operational efficiency and profitability compared to the previous years.

By December 31, 2024, Constellation Energy Corp's Operating ROA surged significantly to 8.22%, reflecting a substantial improvement in utilizing its assets to generate operating income. This notable increase may signal effective management of operations and an enhanced ability to generate profits from its asset base.

Overall, Constellation Energy Corp's Operating ROA has shown fluctuations over the years, with significant variability in performance. It is essential for the company to continue monitoring and improving its operational efficiency to sustain and enhance its profitability over time.