CF Industries Holdings Inc (CF)
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 | 2,230,000 | 5,397,000 | 1,729,000 | 623,000 | 1,003,000 |
| Total assets | US$ in thousands | 14,376,000 | 13,313,000 | 12,375,000 | 12,023,000 | 12,172,000 |
| Operating ROA | 15.51% | 40.54% | 13.97% | 5.18% | 8.24% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,230,000K ÷ $14,376,000K
= 15.51%
CF Industries Holdings Inc's operating return on assets (ROA) has fluctuated over the past five years. The ratio stood at 15.64% at the end of 2023, representing a decrease from the exceptionally high level of 41.85% in 2022. Despite this decrease, the current operating ROA is still higher than the levels seen in 2021, 2020, and 2019, indicating a positive trend in the company's operating efficiency and asset utilization.
The significant increase in operating ROA from 2019 to 2022 reflects an improvement in CF Industries' ability to generate operating income relative to its total assets. This could be attributed to various factors such as increased revenue, cost management, operational effectiveness, or asset optimization strategies implemented by the company during this period.
However, the recent drop in operating ROA in 2023 suggests a potential decline in operating efficiency compared to the previous year. Investors and stakeholders may want to further examine the company's financial performance and operational strategies to understand the reasons behind this decrease and assess CF Industries' ongoing ability to generate profits from its assets effectively.
Overall, while CF Industries Holdings Inc has demonstrated varying levels of operating ROA over the past five years, the company's ability to generate operating income from its assets has generally improved compared to earlier years, with the exception of the recent decrease in 2023.
Peer comparison
Dec 31, 2023