Clean Harbors Inc (CLH)
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 | 670,232 | 612,439 | 634,747 | 347,887 | 251,336 |
| Total assets | US$ in thousands | 7,377,280 | 6,382,870 | 6,129,710 | 5,653,700 | 4,131,520 |
| Operating ROA | 9.09% | 9.60% | 10.36% | 6.15% | 6.08% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $670,232K ÷ $7,377,280K
= 9.09%
Based on the provided data, Clean Harbors Inc's operating return on assets (operating ROA) has shown a positive trend over the years, demonstrating efficiency in generating operating profits from its assets.
In 2020, the operating ROA was 6.08%, indicating that the company generated approximately $0.0608 in operating income for every $1 of assets it had. The slight increase to 6.15% in 2021 suggests a marginal improvement in operational efficiency.
The significant jump to 10.36% in 2022 reflects a notable enhancement in utilizing its assets to generate operating profits. This sharp increase may stem from improved operational performance, cost management, or revenue growth strategies.
Although there was a slight dip to 9.60% in 2023, the operating ROA remained at an elevated level, indicating sustained efficiency in operations and asset utilization.
The slight decrease to 9.09% in 2024, while still above the initial 2020 level, suggests a potential need for further scrutiny into the company's asset management strategies to ensure continued profitability and operational effectiveness.
Overall, the trend of increasing operating ROA from 2020 to 2022 followed by a relatively stable performance in the subsequent years indicates that Clean Harbors Inc has been effectively leveraging its assets to drive operating profitability, with some fluctuations that may require periodic evaluation and adjustment to maintain or enhance its operational efficiency.