CenterPoint Energy Inc (CNP)
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 | 1,760,000 | 1,566,000 | 1,363,000 | 1,039,000 | 1,071,000 |
| Total assets | US$ in thousands | 39,715,000 | 38,546,000 | 37,679,000 | 33,471,000 | 35,529,000 |
| Operating ROA | 4.43% | 4.06% | 3.62% | 3.10% | 3.01% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,760,000K ÷ $39,715,000K
= 4.43%
Centerpoint Energy Inc.'s operating return on assets (operating ROA) has shown improvement over the past five years, increasing from -0.61% in 2020 to 4.43% in 2023. This signifies a positive trend in the company's ability to generate operating income relative to its total assets. The consistent growth in operating ROA indicates efficiency in utilizing its assets to generate operating profits. However, the fluctuation in the ratios over the years suggests that the company may have faced challenges in optimizing asset utilization, as evidenced by the negative figure in 2020. Overall, the upward trajectory in operating ROA reflects an improved operational performance of Centerpoint Energy Inc.
Peer comparison
Dec 31, 2023