Consolidated Edison Inc (ED)
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 | 3,196,000 | 2,624,000 | 2,826,000 | 2,654,000 | 2,676,000 |
| Total assets | US$ in thousands | 66,331,000 | 69,065,000 | 63,116,000 | 62,895,000 | 58,079,000 |
| Operating ROA | 4.82% | 3.80% | 4.48% | 4.22% | 4.61% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,196,000K ÷ $66,331,000K
= 4.82%
Consolidated Edison, Inc.'s operating return on assets (operating ROA) has shown a declining trend over the past five years, decreasing from 4.61% in 2019 to 3.51% in 2023. This indicates that the company's ability to generate operating profits from its assets has weakened over time.
The downward trajectory of the operating ROA could be attributed to various factors such as decreasing operating income relative to total assets or an increase in the average total assets held by the company.
It is important for Consolidated Edison, Inc. to closely monitor and analyze the drivers behind this decline in operating ROA to identify areas for improvement and to enhance operational efficiency. By focusing on optimizing asset utilization and increasing operating efficiency, the company may be able to reverse the trend and improve its operating return on assets in the future.
Peer comparison
Dec 31, 2023