DT Midstream Inc (DTM)
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 | 489,000 | 467,000 | 478,000 | 551,000 | 414,000 |
| Total assets | US$ in thousands | 9,935,000 | 8,982,000 | 8,833,000 | 8,166,000 | 8,342,000 |
| Operating ROA | 4.92% | 5.20% | 5.41% | 6.75% | 4.96% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $489,000K ÷ $9,935,000K
= 4.92%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profit from its operating activities relative to the total assets it holds. Looking at the data provided for DT Midstream Inc, we can observe fluctuations in the Operating ROA over the period from December 31, 2020, to December 31, 2024.
- On December 31, 2020, DT Midstream Inc had an Operating ROA of 4.96%, indicating that for every dollar of assets, the company generated a profit of 4.96 cents from its core operations.
- By December 31, 2021, the Operating ROA increased to 6.75%, showcasing an improvement in efficiency and profitability in utilizing its assets effectively to generate returns.
- However, in the following years, there was a slight decrease in the Operating ROA. By December 31, 2022, it stood at 5.41%, and further declined to 5.20% by December 31, 2023.
- Finally, by December 31, 2024, the Operating ROA declined to 4.92%, showing a decrease compared to the previous year.
Overall, the trend in DT Midstream Inc's Operating ROA indicates some variability in the company's ability to generate profits from its operating assets. It is important for the company to assess the reasons behind these fluctuations and take necessary measures to improve efficiency and profitability in utilizing its assets effectively.
Peer comparison
Dec 31, 2024