Dover Corporation (DOV)
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 | 1,206,360 | 1,366,340 | 1,379,330 | 1,281,510 | 932,987 |
| Total assets | US$ in thousands | 12,509,200 | 11,348,500 | 10,896,500 | 10,403,600 | 9,152,070 |
| Operating ROA | 9.64% | 12.04% | 12.66% | 12.32% | 10.19% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,206,360K ÷ $12,509,200K
= 9.64%
Operating ROA is a key financial ratio that measures a company's ability to generate operating profits from its assets. For Dover Corporation, the trend in operating ROA over the past five years shows an overall improvement.
In December 2020, Dover Corporation had an operating ROA of 10.19%, indicating that it generated $10.19 in operating income for every $100 of assets. This ratio increased to 12.32% by December 2021, demonstrating an improvement in the company's efficiency in utilizing its assets to generate operating profits.
The trend continued to show growth as the operating ROA further increased to 12.66% by December 2022, reaching its peak over the period analyzed. This indicates that Dover Corporation was effectively leveraging its assets to enhance operating income during this period.
However, there was a slight decrease in operating ROA to 12.04% by December 2023, suggesting a potential slowdown in asset utilization efficiency or operating income generation.
By December 2024, Dover Corporation's operating ROA declined to 9.64%, indicating a decrease in operating income generated from its assets compared to the previous year. This decrease could potentially indicate challenges in maintaining or further improving operating profitability relative to asset base.
Overall, the analysis of Dover Corporation's operating ROA highlights fluctuations in the company's ability to generate operating profits from its assets over the five-year period, with periods of improvement followed by slight declines. Further evaluation of the company's operational efficiency and asset utilization strategies may provide insights into the factors driving these fluctuations.
Peer comparison
Dec 31, 2024