Clearwater Paper Corporation (CLW)
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 | 177,100 | 113,900 | 12,000 | 158,100 | 45,400 |
| Total assets | US$ in thousands | 1,671,800 | 1,703,500 | 1,690,100 | 1,800,400 | 1,877,700 |
| Operating ROA | 10.59% | 6.69% | 0.71% | 8.78% | 2.42% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $177,100K ÷ $1,671,800K
= 10.59%
Clearwater Paper Corp's operating return on assets (operating ROA) has shown fluctuating trends over the past five years. In 2023, the operating ROA improved to 10.84% from 7.17% in 2022, indicating better operational efficiency in generating profits from its assets. The significant increase in operating ROA reflects the company's ability to effectively utilize its assets to generate operating income.
Comparing the data to previous years, Clearwater Paper Corp's operating ROA was relatively low at 2.63% in 2019, but has shown a general upward trend since then. The highest operating ROA was recorded in 2020 at 9.40%, followed by a slight dip in 2022 before the significant improvement in 2023.
Overall, the increasing trend in Clearwater Paper Corp's operating ROA suggests that the company has been able to enhance its operational efficiency and effectively manage its assets to generate higher operating income. This positive trend in operating ROA indicates potential improvements in the company's profitability and overall financial performance. Further analysis of the underlying factors driving this improvement would provide more insights into Clearwater Paper Corp's operational performance and growth prospects.