Dow Inc (DOW)

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 -39,000 781,000 847,000 1,017,000 479,000 -732,000 -71,000 1,098,000 2,930,000 5,023,000 6,780,000 7,200,000 6,588,000 6,648,000 3,537,000 1,154,000 867,000 -2,080,000 -1,177,000 -611,000
Total assets US$ in thousands 57,312,000 59,389,000 58,526,000 58,817,000 57,967,000 58,288,000 58,294,000 59,316,000 60,603,000 59,557,000 62,143,000 63,335,000 62,990,000 61,749,000 61,768,000 60,437,000 61,470,000 59,945,000 59,276,000 60,686,000
Operating ROA -0.07% 1.32% 1.45% 1.73% 0.83% -1.26% -0.12% 1.85% 4.83% 8.43% 10.91% 11.37% 10.46% 10.77% 5.73% 1.91% 1.41% -3.47% -1.99% -1.01%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-39,000K ÷ $57,312,000K
= -0.07%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. Looking at the data provided for Dow Inc from March 31, 2020, to December 31, 2024, we can observe fluctuations in the company's operating ROA.

Initially, Dow Inc experienced negative operating ROA from March 31, 2020, to September 30, 2020, indicating that the company was not efficient in generating profits from its assets during this period. However, there was a significant turnaround in performance starting from December 31, 2020, where the operating ROA turned positive.

From March 31, 2021, to December 31, 2022, Dow Inc demonstrated a positive trend in operating ROA, with a steady increase and reaching double-digit percentages by September 30, 2021, and December 31, 2021. This period reflected improved operational efficiency and profitability for the company.

Subsequently, there was a decrease in operating ROA from March 31, 2022, to December 31, 2024, with fluctuations in percentage values. The operating ROA ranged from positive to negative values during this period, indicating some fluctuations in profitability and operational efficiency for Dow Inc.

Overall, the analysis of Dow Inc's operating ROA shows a mix of positive and negative trends over the period under review. It is essential for the company to focus on maintaining or improving its operational efficiency to sustain profitability and maximize returns from its assets in the future.