Clean Harbors Inc (CLH)
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 | 612,439 | 634,747 | 347,887 | 251,336 | 229,456 |
| Total assets | US$ in thousands | 6,382,870 | 6,129,710 | 5,653,700 | 4,131,520 | 4,108,900 |
| Operating ROA | 9.60% | 10.36% | 6.15% | 6.08% | 5.58% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $612,439K ÷ $6,382,870K
= 9.60%
Clean Harbors, Inc.'s operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The operating ROA increased from 5.58% in 2019 to 10.36% in 2022, indicating a significant improvement in the company's efficiency in generating operating income from its assets. However, there was a slight decrease to 9.60% in 2023.
Despite the slight decline in 2023, Clean Harbors, Inc. has generally demonstrated an ability to effectively utilize its assets to generate operating income. The 2023 operating ROA of 9.60% is still higher than in 2020 and 2021, suggesting ongoing improvements in asset management and operational efficiency.
It is important for Clean Harbors, Inc. to continue monitoring and optimizing its asset utilization to sustain and potentially improve its operating ROA in the future. Overall, the company has shown positive performance in this area, reflecting a successful strategy in converting assets into operating profits.
Peer comparison
Dec 31, 2023