Dow Inc (DOW)
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 | 8,000 | 479,000 | 2,935,000 | 6,559,000 | 2,749,000 |
| Total assets | US$ in thousands | 57,312,000 | 57,967,000 | 60,603,000 | 62,990,000 | 61,470,000 |
| Operating ROA | 0.01% | 0.83% | 4.84% | 10.41% | 4.47% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $8,000K ÷ $57,312,000K
= 0.01%
Operating ROA is a financial ratio that indicates how well a company is generating operating profit from its assets. In the case of Dow Inc, the trend in Operating ROA over the years shows some fluctuations.
In December 31, 2020, Dow Inc's Operating ROA was 4.47%, which increased significantly to 10.41% by December 31, 2021. This jump suggests that the company improved its ability to generate operating profit relative to its asset base.
However, by December 31, 2022, the Operating ROA dropped slightly to 4.84%, indicating a potential decrease in the efficiency of utilizing its assets to generate operating income. This trend continued in December 31, 2023, with Operating ROA further declining to 0.83%.
The most recent data point, in December 31, 2024, shows a significant reduction in Dow Inc's Operating ROA to 0.01%. This indicates a considerable decrease in the company's ability to generate operating profit from its assets, which could be a cause for concern.
Overall, the fluctuating Operating ROA of Dow Inc suggests that the company's efficiency in generating operating profit from its asset base has varied in recent years, and it would be important for stakeholders to further investigate the reasons behind these fluctuations to ensure sustained performance in the future.
Peer comparison
Dec 31, 2024