Constellation Energy Corp (CEG)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 5,081,000 4,296,000 3,806,000 2,981,000 2,152,000 2,188,000 1,299,000 785,000 901,000 676,000 1,594,000 1,131,000 -346,000 -698,000 -716,000 -75,000 1,308,000 1,828,000 1,453,000 1,309,000
Total assets US$ in thousands 52,926,000 51,834,000 51,340,000 52,014,000 50,758,000 48,965,000 46,559,000 46,158,000 46,909,000 46,616,000 45,333,000 46,846,000 48,086,000 48,010,000 45,821,000 47,326,000 48,094,000 47,372,000 47,003,000 47,882,000
Operating ROA 9.60% 8.29% 7.41% 5.73% 4.24% 4.47% 2.79% 1.70% 1.92% 1.45% 3.52% 2.41% -0.72% -1.45% -1.56% -0.16% 2.72% 3.86% 3.09% 2.73%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $5,081,000K ÷ $52,926,000K
= 9.60%

Operating ROA reflects the efficiency with which Constellation Energy Corp utilizes its assets to generate operating profits. Analyzing the trend in operating ROA over the reporting periods, we observe a fluctuating pattern. From March 31, 2020, to December 31, 2021, the company experienced decreasing operating ROA, with negative percentages indicating a decline in operating efficiency. However, starting from March 31, 2022, there was a positive turnaround in operating ROA, showing an upward trend.

The company's operating ROA improved significantly in 2024, reaching 9.60% by December 31, reflecting enhanced operational efficiency. This positive performance suggests that Constellation Energy Corp is effectively utilizing its assets to generate operating profits, which is a favorable sign for investors and stakeholders. It indicates the company's ability to generate higher returns relative to its asset base, which may result in improved financial performance and shareholder value.