Deluxe Corporation (DLX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 193,994 | 201,294 | 181,314 | 180,477 | 164,231 | 129,379 | 165,851 | 118,404 | 133,399 | 157,251 | 135,583 | 155,330 | 142,210 | 135,410 | 143,406 | 141,321 | 44,515 | 74,815 | -310,268 | -282,783 |
| Total assets | US$ in thousands | 2,831,000 | 2,622,920 | 2,666,310 | 2,728,600 | 3,080,600 | 2,884,700 | 2,923,000 | 2,940,910 | 3,076,500 | 2,957,320 | 2,940,400 | 2,954,310 | 3,074,400 | 3,006,190 | 3,017,500 | 1,893,250 | 1,874,900 | 2,007,200 | 2,060,080 | 2,044,500 |
| Operating ROA | 6.85% | 7.67% | 6.80% | 6.61% | 5.33% | 4.49% | 5.67% | 4.03% | 4.34% | 5.32% | 4.61% | 5.26% | 4.63% | 4.50% | 4.75% | 7.46% | 2.37% | 3.73% | -15.06% | -13.83% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $193,994K ÷ $2,831,000K
= 6.85%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. For Deluxe Corporation, the Operating ROA has shown variability over the period under review.
From March 31, 2020, to June 30, 2020, the Operating ROA was negative, indicating that the company was not efficiently utilizing its assets to generate operating profits. However, from September 30, 2020, through March 31, 2023, the Operating ROA showed a positive trend, reflecting an improvement in the company's operational efficiency and profitability.
From June 30, 2023, to September 30, 2024, the Operating ROA fluctuated within a range, with occasional increases and decreases. Overall, the Operating ROA for Deluxe Corporation remained positive during this period, implying that the company was able to generate operating profits from its assets.
The highest Operating ROA was observed on September 30, 2024, at 7.67%, indicating a peak in the company's efficiency in utilizing its operational assets to generate profits. The Operating ROA slightly decreased to 6.85% by December 31, 2024, but remained at a relatively healthy level.
In conclusion, the analysis of Deluxe Corporation's Operating ROA demonstrates fluctuations over time, with periods of improvement and stability in operational efficiency and profitability.