Crane NXT Co (CXT)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 268,800 | 286,800 | 369,500 | 529,200 | 262,900 |
| Total assets | US$ in thousands | 2,386,500 | 2,129,400 | 4,390,200 | 4,486,600 | 4,588,900 |
| Operating ROA | 11.26% | 13.47% | 8.42% | 11.80% | 5.73% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $268,800K ÷ $2,386,500K
= 11.26%
Operating Return on Assets (Operating ROA) is a key financial metric that indicates the operational efficiency and profitability of a company in generating profits from its assets. Analyzing Crane NXT Co's Operating ROA over the past five years reveals fluctuations in its performance.
As of December 31, 2020, Crane NXT Co's Operating ROA stood at 5.73%, indicating that the company was generating approximately 5.73 cents of operating income for every dollar of assets it had. This percentage increased significantly by the end of 2021 to 11.80%, signaling an improvement in the company's operational efficiency and profitability.
In 2022, Crane NXT Co's Operating ROA slightly decreased to 8.42%, suggesting a potential decline in the company's ability to efficiently utilize its assets to generate operating income. However, the following year, by December 31, 2023, the Operating ROA surged to 13.47%, indicating a remarkable performance in efficiently utilizing its assets to generate higher operating profits.
By December 31, 2024, Crane NXT Co's Operating ROA was recorded at 11.26%, which, although slightly lower compared to the previous year, still demonstrated a strong ability to generate operating income from its assets.
Overall, the fluctuation in Crane NXT Co's Operating ROA over the five-year period suggests varying levels of operational efficiency and profitability. It is crucial for the company to sustain and improve its Operating ROA in the long term to ensure continued financial health and value creation for its stakeholders.
Peer comparison
Dec 31, 2024