PC Connection Inc (CNXN)
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 | 97,062 | 103,153 | 120,552 | 96,517 | 72,074 |
| Total assets | US$ in thousands | 1,299,350 | 1,188,380 | 1,099,830 | 1,083,380 | 1,015,370 |
| Operating ROA | 7.47% | 8.68% | 10.96% | 8.91% | 7.10% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $97,062K ÷ $1,299,350K
= 7.47%
PC Connection Inc's operating return on assets (operating ROA) has shown a positive trend over the years, starting at 7.10% on December 31, 2020, and increasing steadily to 8.91% on December 31, 2021, 10.96% on December 31, 2022. However, there was a slight dip in 2023 to 8.68% before decreasing further to 7.47% by December 31, 2024.
The increasing trend in operating ROA from 2020 to 2022 indicates that the company was able to generate more operating income relative to its assets during this period, reflecting improved operational efficiency. The subsequent decrease in 2023 and 2024 may suggest challenges in maintaining or enhancing this efficiency level.
Overall, while the company's operating ROA fluctuated in the later years, it remained relatively healthy, showing a consistent ability to generate operating income in relation to its asset base. Further analysis of the company's operations and profitability drivers could provide insights into the fluctuations observed in the operating ROA.
Peer comparison
Dec 31, 2024