Columbia Sportswear Company (COLM)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	310,284	352,614	363,321	365,865	393,104	449,268	437,468	463,690	450,504	362,629	314,811	209,516	137,049	151,989	218,361	305,026	394,971	409,106	386,235	379,619
Total assets	US$ in thousands	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	2,931,590	2,751,080	2,662,450	2,613,710
Operating ROA		10.56%	12.60%	13.02%	12.66%	12.88%	15.54%	16.04%	16.63%	14.69%	12.55%	10.99%	7.50%	4.83%	5.73%	8.33%	11.09%	13.47%	14.87%	14.51%	14.52%

December 31, 2023 calculation

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

Operating Return on Assets (Operating ROA) provides insight into how efficiently Columbia Sportswear Co. is generating profits from its assets used in operations. Looking at the historical trend, we observe a consistent decline in operating ROA from Q1 2022 to Q4 2023. The company's operating ROA was at its highest in Q1 2022 at 15.94% and has steadily decreased to 10.67% in Q4 2023.

This downward trend suggests that Columbia Sportswear Co. may be experiencing challenges in generating operating profits relative to its asset base. A declining operating ROA could indicate inefficiencies in the company's operations or a decrease in profitability levels relative to the assets employed. Management should closely monitor and address the factors contributing to this trend to improve operational efficiency and profitability.

It may be beneficial for stakeholders to further analyze the components that make up the operating ROA, such as operating profit margin and asset turnover, to gain a deeper understanding of the root causes of the decreasing trend. Conducting a thorough investigation into the company's operational performance and asset utilization could help identify areas for improvement and strategic decision-making to enhance overall financial performance.