Deluxe Corporation (DLX)
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 | 192,176 | 160,791 | 169,400 | 204,100 | 227,600 |
| Total assets | US$ in thousands | 2,831,040 | 3,080,620 | 3,076,500 | 3,074,400 | 1,874,900 |
| Operating ROA | 6.79% | 5.22% | 5.51% | 6.64% | 12.14% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $192,176K ÷ $2,831,040K
= 6.79%
Deluxe Corporation's operating return on assets (operating ROA) has shown a decreasing trend over the period from December 31, 2020, to December 31, 2024. The operating ROA decreased from 12.14% in 2020 to 6.64% in 2021, further dropping to 5.51% in 2022, and declining slightly to 5.22% in 2023. However, there was a slight improvement in operating ROA to 6.79% by December 31, 2024.
This downward trend in operating ROA indicates that Deluxe Corporation's operating profit generated by its assets has been decreasing relative to the size of its asset base over the years. It may suggest challenges in generating sufficient operating income from its assets or inefficiencies in asset utilization. Deluxe Corporation may need to evaluate its operational efficiency and asset management strategies to enhance its profitability and ensure a sustainable return on assets in the future.