CH Robinson Worldwide Inc (CHRW)
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 | 669,141 | 514,607 | 1,266,780 | 1,082,110 | 673,268 |
| Total assets | US$ in thousands | 5,297,930 | 5,225,280 | 5,954,560 | 7,028,110 | 5,144,260 |
| Operating ROA | 12.63% | 9.85% | 21.27% | 15.40% | 13.09% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $669,141K ÷ $5,297,930K
= 12.63%
Operating Return on Assets (Operating ROA) measures a company's ability to generate operating profits from its assets. Looking at the data for CH Robinson Worldwide Inc, we observe fluctuations in the Operating ROA over the years:
- In December 2020, CH Robinson's Operating ROA stood at 13.09%. This indicates that the company generated $13.09 in operating income for every $100 of assets it had during that period.
- By December 2021, the Operating ROA increased to 15.40%, showcasing an improvement in the company's operational efficiency and profitability from its asset base.
- The following year, December 2022, saw a substantial rise in Operating ROA to 21.27%. This significant surge suggests that CH Robinson was able to efficiently utilize its assets to generate higher operating income.
- However, by December 2023, the Operating ROA decreased to 9.85%, indicating a decline in the company's ability to generate operating profits from its assets effectively.
- In December 2024, there was a slight rebound in Operating ROA to 12.63%, but it still remained below the peak seen in 2022.
Overall, the analysis suggests that CH Robinson's Operating ROA has shown fluctuations over the years, with significant improvements in some periods and declines in others. It is essential for the company to consistently monitor and manage its asset utilization and operating efficiency to maintain sustainable profitability levels.
Peer comparison
Dec 31, 2024