Dominion Energy Inc (D)
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 | 3,247,000 | 3,414,000 | 1,433,000 | 1,996,000 | 2,055,000 |
| Total assets | US$ in thousands | 102,415,000 | 109,032,000 | 104,243,000 | 99,590,000 | 95,905,000 |
| Operating ROA | 3.17% | 3.13% | 1.37% | 2.00% | 2.14% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,247,000K ÷ $102,415,000K
= 3.17%
Operating return on assets (Operating ROA) is a financial metric that indicates the efficiency of a company in generating operating profits relative to its total assets. Analyzing the data provided for Dominion Energy Inc, we observe fluctuations in the Operating ROA over the past five years:
- As of December 31, 2020, the Operating ROA stood at 2.14%, indicating that the company generated operating profits equivalent to 2.14% of its total assets.
- By December 31, 2021, the Operating ROA decreased slightly to 2.00%, suggesting a slight decline in operating efficiency.
- A more significant drop was recorded by December 31, 2022, with the Operating ROA decreasing to 1.37%. This decline could signify challenges in optimizing asset utilization or decreasing profitability from operations.
- However, a positive trend emerged in the subsequent years, with the Operating ROA rebounding to 3.13% by December 31, 2023, and further increasing to 3.17% by December 31, 2024. These improvements indicate enhanced operating efficiency and profitability relative to the total assets held by the company.
In conclusion, while Dominion Energy Inc experienced fluctuations in its Operating ROA over the past five years, the recent upward trend suggests improvements in operating efficiency and profitability, potentially reflecting effective management of assets and operations.
Peer comparison
Dec 31, 2024