Columbia Sportswear Company (COLM)

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	310,284	393,104	450,504	137,049	394,971
Total assets	US$ in thousands	2,939,010	3,051,550	3,067,130	2,836,570	2,931,590
Operating ROA		10.56%	12.88%	14.69%	4.83%	13.47%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $310,284K ÷ $2,939,010K
= 10.56%

Columbia Sportswear Co.'s operating return on assets (operating ROA) shows a fluctuating trend over the past five years, as seen in the data provided. The operating ROA decreased from 12.94% in 2019 to 4.40% in 2020, indicating a significant drop in profitability. However, the company managed to improve its performance in the following years, with operating ROA increasing to 14.09% in 2021 and then slightly decreasing to 13.33% in 2022 before further declining to 10.67% in 2023.

This trend suggests that Columbia Sportswear Co. has experienced some challenges in maintaining consistent profitability over the years. The significant improvement in 2021 indicates that the company was able to enhance its operational efficiency and generate more earnings from its assets. However, the subsequent decline in 2022 and 2023 raises concerns about the company's ability to sustain and build on this improvement.

Overall, the fluctuating nature of Columbia Sportswear Co.'s operating ROA highlights the importance of closely monitoring and managing the company's asset utilization and operational performance to ensure sustainable profitability in the future.