DXP Enterprises Inc (DXPE)
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 | 138,722 | 97,752 | 39,857 | -27,668 | 67,412 |
| Total assets | US$ in thousands | 1,177,440 | 1,037,280 | 894,227 | 868,131 | 788,220 |
| Operating ROA | 11.78% | 9.42% | 4.46% | -3.19% | 8.55% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $138,722K ÷ $1,177,440K
= 11.78%
Operating Return on Assets (Operating ROA) is a key financial ratio that evaluates a company's profitability by measuring how effectively it generates operating profits relative to its total assets.
Analyzing DXP Enterprises Inc's Operating ROA over the past five years reveals fluctuations in the company's operational efficiency.
In 2023, DXP's Operating ROA improved to 11.78%, indicating a stronger ability to generate profits from its assets compared to the previous year where it stood at 9.42%. This increase suggests that DXP managed to enhance its operational performance and profitability in the most recent year.
Compared to 2021 when the Operating ROA was 4.46%, the significant improvement in 2023 reflects a more efficient utilization of assets to generate operating income.
However, it is important to note that in 2020, DXP Enterprises Inc had a negative Operating ROA of -3.19%, indicating that the company was not effectively generating profits from its operations relative to its assets. The subsequent recovery in 2021 and the positive trend observed in the following years demonstrate efforts to improve operational efficiency.
Overall, DXP Enterprises Inc's Operating ROA has shown fluctuations over the past five years, with a notable improvement in 2023. Investors and stakeholders should continue monitoring this ratio to assess the company's operational performance and profitability in the future.
Peer comparison
Dec 31, 2023