CNH Industrial N.V. (CNH)
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 | 3,850,000 | 4,945,000 | 4,356,000 | 3,300,000 | 1,738,000 |
| Total assets | US$ in thousands | 42,933,000 | 46,267,000 | 39,381,000 | 49,416,000 | 48,719,000 |
| Operating ROA | 8.97% | 10.69% | 11.06% | 6.68% | 3.57% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,850,000K ÷ $42,933,000K
= 8.97%
The operating return on assets (operating ROA) of CNH Industrial N.V. has shown a positive trend over the evaluated period. Starting at 3.57% on December 31, 2020, the operating ROA increased to 6.68% by December 31, 2021. Subsequently, there was a significant improvement, reaching 11.06% by December 31, 2022. In the following year, although there was a slight decline with the operating ROA standing at 10.69% on December 31, 2023, the metric remained relatively high. By the end of the period on December 31, 2024, the operating ROA decreased to 8.97%, but it still remained above the initial level.
This overall performance indicates that CNH Industrial N.V. efficiently utilized its assets to generate operating income during the period under review, reflecting a positive operational performance. However, the slight decline in the operating ROA in 2023 and 2024 may suggest a need for the company to assess and optimize its asset management strategies to sustain or improve its profitability in the future.
Peer comparison
Dec 31, 2024