CNH Industrial N.V. (CNH)
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 | 4,704,000 | 4,017,000 | 3,648,000 | 1,198,000 | 2,800,000 |
| Total assets | US$ in thousands | 46,267,000 | 39,381,000 | 6,789,000 | 48,719,000 | 47,352,000 |
| Operating ROA | 10.17% | 10.20% | 53.73% | 2.46% | 5.91% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $4,704,000K ÷ $46,267,000K
= 10.17%
Operating ROA measures how efficiently a company generates operating profits from its assets. A higher percentage indicates better asset utilization and profitability.
CNH Industrial N.V.'s operating ROA has fluctuated over the past five years:
- In 2023, the operating ROA decreased slightly to 10.17% compared to 10.20% in 2022.
- A significant drop occurred in 2021 with an operating ROA of 53.73%, indicating a remarkable efficiency in generating profits from assets.
- In 2020, the operating ROA was at a lower 2.46%, suggesting a less efficient performance in utilizing assets.
- The operating ROA improved in 2019 to 5.91% compared to the previous year.
Overall, the trend in operating ROA for CNH Industrial N.V. shows variations, with a notable peak in 2021 and lower levels in 2020 and 2019. The company's ability to efficiently utilize its assets to generate operating profits may be influenced by various factors such as operational efficiency, asset management, and industry conditions.
Peer comparison
Dec 31, 2023