PC Connection Inc (CNXN)
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 | 103,153 | 120,552 | 96,517 | 72,074 | 111,972 |
| Total assets | US$ in thousands | 1,188,380 | 1,099,830 | 1,083,380 | 1,015,370 | 937,335 |
| Operating ROA | 8.68% | 10.96% | 8.91% | 7.10% | 11.95% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $103,153K ÷ $1,188,380K
= 8.68%
PC Connection Inc's operating return on assets (operating ROA) has shown fluctuating trends over the past five years. In 2023, the operating ROA decreased to 8.68% from the previous year's 10.96%. This decline indicates a decrease in the company's ability to generate operating income from its assets compared to the previous year.
Comparing the operating ROA to earlier years, the 2023 figure is lower than the 2021 figure of 8.91% but higher than the 2020 figure of 7.10%. The highest operating ROA was recorded in 2019 at 11.95%, indicating a peak performance in generating operating income from assets.
Overall, the varying trends in the operating ROA suggest that PC Connection Inc's efficiency in generating operating income from its assets has been inconsistent over the past five years. It is essential for the company to focus on improving its operational efficiency to enhance its profitability and return on assets in the future.
Peer comparison
Dec 31, 2023