DT Midstream Inc (DTM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Operating income | US$ in thousands | 471,000 | 478,000 | 402,000 |
| Total assets | US$ in thousands | 8,982,000 | 8,833,000 | 8,166,000 |
| Operating ROA | 5.24% | 5.41% | 4.92% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $471,000K ÷ $8,982,000K
= 5.24%
DT Midstream Inc's operating return on assets (operating ROA) has shown a consistent upward trend over the past four years. The operating ROA increased from 4.94% in 2020 to 5.20% in 2023. This indicates that the company has been able to generate more operating income relative to its total assets over time, which is a positive sign of efficiency in asset utilization.
Furthermore, the incremental improvements in operating ROA from 5.13% in 2021 to 5.15% in 2022 and finally to 5.20% in 2023 suggest a sustained effort towards enhancing operational performance and optimizing asset utilization. This trend highlights DT Midstream Inc's ability to generate higher operating profits in relation to the assets it holds, reflecting a potentially effective management of resources and operational efficiency.
Overall, the consistently increasing trend in operating ROA for DT Midstream Inc indicates positive performance in utilizing its assets to generate operating income, which could be perceived favorably by investors and stakeholders as a sign of effective management and operational efficiency.
Peer comparison
Dec 31, 2023