CVR Energy Inc (CVI)
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 | 1,123,000 | 963,000 | 87,000 | -333,000 | 580,000 |
| Total assets | US$ in thousands | 4,707,000 | 4,119,000 | 3,906,000 | 3,978,000 | 3,905,000 |
| Operating ROA | 23.86% | 23.38% | 2.23% | -8.37% | 14.85% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,123,000K ÷ $4,707,000K
= 23.86%
Operating ROA is a key financial ratio that measures a company's efficiency in generating operating income from its total assets. Looking at CVR Energy Inc's trend in operating ROA over the past five years, we observe fluctuations in its performance.
In 2020, the company experienced a negative operating ROA of -7.16%, indicating that it was not effectively utilizing its assets to generate operating income during that period. However, CVR Energy Inc demonstrated a significant improvement in 2021, with an operating ROA of 2.30%, showing a recovery in asset efficiency.
The company's operating ROA further improved in 2022 to 23.65%, indicating a substantial increase in its ability to generate operating income from its assets. This positive trend continued in 2023, where CVR Energy Inc achieved an operating ROA of 23.90%, reflecting continued efficiency in asset utilization and strong operating performance.
Overall, the recent upward trend in operating ROA suggests that CVR Energy Inc has been successful in enhancing its operational efficiency and profitability in recent years. However, it is essential for the management to sustain this positive momentum to ensure long-term financial health and continued success.
Peer comparison
Dec 31, 2023