Crane NXT Co (CXT)
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 | 286,800 | 301,300 | 529,200 | 262,900 | 183,100 |
| Total assets | US$ in thousands | 2,129,400 | 2,129,400 | 4,486,600 | 4,615,000 | 4,423,700 |
| Operating ROA | 13.47% | 14.15% | 11.80% | 5.70% | 4.14% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $286,800K ÷ $2,129,400K
= 13.47%
Crane NXT Co's operating return on assets (operating ROA) has shown a positive trend over the past five years, indicating improving efficiency in generating operating profits relative to its total assets. The operating ROA increased from 4.14% in 2019 to 13.47% in 2023. This upward trajectory suggests that the company has been able to generate a higher level of operating income per dollar of assets deployed over the years.
The significant improvement in operating ROA from 5.70% in 2020 to 13.47% in 2023 indicates that Crane NXT Co has become more effective in utilizing its assets to generate operating profits. This suggests that the company may have implemented operational efficiencies, improved cost management, or enhanced revenue generation strategies.
Overall, the increasing trend in operating ROA reflects positively on Crane NXT Co's operational performance and efficiency in utilizing its assets to generate profits. Further analysis of the company's operating expenses, revenue sources, and asset management practices could provide deeper insights into the factors driving this improvement in operating ROA.
Peer comparison
Dec 31, 2023