Constellation Energy Corp (CEG)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Operating income	US$ in thousands	1,610,000	495,000	-346,000
Total assets	US$ in thousands	50,758,000	46,909,000	48,086,000
Operating ROA		3.17%	1.06%	-0.72%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,610,000K ÷ $50,758,000K
= 3.17%

Constellation Energy Corporation's operating return on assets (operating ROA) has shown improvement over the past four years. The operating ROA increased from -1.16% in 2021 to 3.12% in 2023, reflecting a positive turnaround in the company's efficiency in generating operating income relative to its total assets. This improvement indicates that the company is becoming more effective in utilizing its assets to generate operating profits.

It is noteworthy that the operating ROA was negative in 2021, indicating that the company was not generating enough operating income with its assets during that period. However, the significant improvement in the following years suggests that Constellation Energy Corporation has made operational adjustments to enhance its asset utilization and improve profitability.

Overall, the upward trend in operating ROA signifies positive financial performance and operational efficiency for Constellation Energy Corporation. It suggests that the company's management has been successful in maximizing the return generated from its assets, which is a favorable indicator for investors and stakeholders.