Dow Inc (DOW)
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 | 479,000 | 2,935,000 | 6,559,000 | 2,749,000 | 4,215,000 |
| Total assets | US$ in thousands | 57,967,000 | 60,603,000 | 62,990,000 | 61,470,000 | 60,524,000 |
| Operating ROA | 0.83% | 4.84% | 10.41% | 4.47% | 6.96% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $479,000K ÷ $57,967,000K
= 0.83%
Operating return on assets (ROA) measures a company's ability to generate profit from its operating activities relative to its total assets. The trend of Dow Inc's operating ROA over the past five years reveals fluctuations.
The operating ROA declined from 2019 to 2020, indicating a decrease in the company's ability to generate operating income from its assets. However, the metric rebounded in 2021, reaching its highest level in the given period at 12.52%, showcasing an improvement in efficiency in generating operating income from assets.
Subsequently, the operating ROA declined in 2022 and further in 2023. These declines may suggest a reduced ability to generate operating income from the company's assets in these periods. The variations in operating ROA reflect changes in the company's operating efficiency and asset utilization over the years.
Overall, the analysis of Dow Inc's operating ROA suggests periods of both improvement and decline in the company's ability to generate operating income from its assets, indicating fluctuating operational efficiency and asset utilization.
Peer comparison
Dec 31, 2023