Columbia Sportswear Company (COLM)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Operating income (ttm) US$ in thousands 256,187 250,233 272,246 309,750 328,577 423,814 434,521 437,065 464,304 449,268 437,468 463,690 450,504 362,629 314,811 209,516 137,049 151,989 218,361 305,026
Total assets US$ in thousands 2,975,260 2,760,740 2,760,820 2,762,230 2,939,010 2,798,940 2,789,800 2,888,970 3,051,550 2,890,150 2,726,790 2,787,980 3,067,130 2,889,360 2,863,300 2,793,910 2,836,570 2,652,310 2,622,400 2,751,490
Operating ROA 8.61% 9.06% 9.86% 11.21% 11.18% 15.14% 15.58% 15.13% 15.22% 15.54% 16.04% 16.63% 14.69% 12.55% 10.99% 7.50% 4.83% 5.73% 8.33% 11.09%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $256,187K ÷ $2,975,260K
= 8.61%

Operating return on assets (Operating ROA) is a key profitability ratio that measures a company's ability to generate profits from its operational assets. This ratio indicates how efficiently a company is using its assets to generate operating income.

Analyzing the trend of Columbia Sportswear Company's Operating ROA from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's operating efficiency over time.

The Operating ROA started at 11.09% in March 2020 and gradually declined to 4.83% by December 2020, indicating a decrease in profitability relative to the company's assets during this period. However, from March 2021 to September 2021, there was a notable improvement, with the Operating ROA increasing steadily from 7.50% to 12.55%, reflecting enhanced operational performance and asset utilization.

Subsequently, from December 2021 to March 2023, there was a relatively stable period with the Operating ROA oscillating within the range of 14.69% to 15.58%, suggesting consistent profitability generated from the company's assets. However, there was a slight decline from September 2023 to December 2024, with the Operating ROA decreasing from 15.14% to 8.61%.

Overall, Columbia Sportswear Company's Operating ROA trend displays periods of both improvement and decline in operating efficiency and profitability. It is essential for the company to focus on optimizing asset utilization and operational performance to maintain sustainable profitability and enhance overall financial performance.