Corteva Inc (CTVA)
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 | -1,966,000 | -1,936,000 | -2,617,000 | -3,040,000 | -3,420,000 |
| Total assets | US$ in thousands | 42,996,000 | 42,618,000 | 42,344,000 | 42,649,000 | 42,397,000 |
| Operating ROA | -4.57% | -4.54% | -6.18% | -7.13% | -8.07% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-1,966,000K ÷ $42,996,000K
= -4.57%
Corteva Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years, increasing from 1.36% in 2019 to 4.91% in 2023. This indicates that the company has been able to generate more operating profit relative to its total assets over time.
The improvement in operating ROA suggests that Corteva Inc has been more efficient in utilizing its assets to generate operating income. This could be attributed to factors such as operational improvements, cost management, and revenue growth.
The steady increase in operating ROA is a positive sign for investors and stakeholders as it indicates that the company's operations are becoming more profitable. However, it is important to monitor this ratio over time to ensure continued efficiency and profitability in utilizing assets for generating operating earnings.
Peer comparison
Dec 31, 2023