Celsius Holdings Inc (CELH)
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 | 266,366 | -157,801 | -4,090 | 7,912 | -1,448 |
| Total assets | US$ in thousands | 1,536,400 | 1,222,070 | 314,018 | 131,290 | 90,382 |
| Operating ROA | 17.34% | -12.91% | -1.30% | 6.03% | -1.60% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $266,366K ÷ $1,536,400K
= 17.34%
Operating return on assets (Operating ROA) measures the company's ability to generate operating profit from its assets. For Celsius Holdings Inc, the trend in Operating ROA over the past five years has been mixed. In 2023, the Operating ROA improved significantly to 17.34%, indicating that the company was able to generate a higher operating profit relative to its assets compared to the previous year.
However, in 2022, the Operating ROA was negative at -12.91%, suggesting that the company incurred operating losses that exceeded the value generated by its assets. This negative performance improved in 2023.
In 2021, the Operating ROA was also negative at -1.30%, indicating a continued struggle to generate operating profits from assets. The performance improved in 2020, with a positive Operating ROA of 6.03%, showing a better utilization of assets to generate operating income.
In 2019, the Operating ROA was once again negative at -1.60%, signaling a similar challenge as seen in 2021.
Overall, Celsius Holdings Inc should focus on sustaining the positive Operating ROA achieved in 2023, as it indicates better operational efficiency and profitability. Efforts should be made to consistently generate positive returns on assets to ensure long-term financial sustainability.
Peer comparison
Dec 31, 2023