Duke Energy Corporation (DUK)
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 | 7,070,000 | 6,012,000 | 5,500,000 | 4,571,000 | 5,709,000 |
| Total assets | US$ in thousands | 176,893,000 | 178,086,000 | 169,587,000 | 162,388,000 | 158,838,000 |
| Operating ROA | 4.00% | 3.38% | 3.24% | 2.81% | 3.59% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $7,070,000K ÷ $176,893,000K
= 4.00%
The operating return on assets (ROA) of Duke Energy Corp. has shown fluctuating trends over the past five years. In 2023, the operating ROA increased to 4.02%, indicating that the company generated 4.02 cents of operating income for every dollar of assets employed in its operations.
Compared to 2022, Duke Energy's operating ROA improved from 3.61% to 4.02% in 2023, reflecting a more effective utilization of assets to generate operating income. This could be attributed to improvements in operational efficiency, cost management, or revenue enhancement initiatives.
When looking further back, the operating ROA in 2021 was 3.37%, which was higher than in 2020 when it was 2.17%. The significant increase from 2020 to 2021 suggests that Duke Energy successfully enhanced its operational performance and efficiency during that period.
However, in 2019, Duke Energy recorded an operating ROA of 3.59%, slightly higher than in 2023. This indicates that the company's performance in 2019, in terms of generating operating income from its assets, was similar to its performance in 2023.
Overall, the fluctuating trend in Duke Energy's operating ROA highlights the company's ability to manage its assets effectively over the years. The recent increase in the operating ROA to 4.02% in 2023 suggests an improvement in the company's operational effectiveness and profitability compared to the previous years.
Peer comparison
Dec 31, 2023