Chesapeake Utilities Corporation (CPK)
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 | 150,803 | 142,933 | 131,112 | 112,723 | 106,285 |
| Total assets | US$ in thousands | 3,304,700 | 2,215,040 | 2,114,870 | 1,932,490 | 1,783,200 |
| Operating ROA | 4.56% | 6.45% | 6.20% | 5.83% | 5.96% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $150,803K ÷ $3,304,700K
= 4.56%
The operating return on assets (operating ROA) for Chesapeake Utilities Corp has shown a fluctuating trend over the past five years. In 2023, the operating ROA stood at 4.88%, exhibiting a decrease from the previous year's level of 6.45%. Despite this decline, the company's performance remains relatively stable compared to earlier years such as 2021 and 2020 when the operating ROA was 6.20% and 5.83%, respectively.
The highest operating ROA over the period was observed in 2019 at 5.95%, indicating a slightly better performance compared to recent years. It is important to note that a higher operating ROA signifies that Chesapeake Utilities Corp is generating more operating income relative to its total assets, which is a positive indicator of operational efficiency and profitability.
Overall, while there has been some variability in Chesapeake Utilities Corp's operating ROA in recent years, the company has maintained a reasonable level of operational performance, although the recent dip in 2023 warrants further investigation to assess the factors contributing to this decline.
Peer comparison
Dec 31, 2023