Equifax Inc (EFX)
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 | 1,042,100 | 933,600 | 1,056,000 | 1,138,000 | 676,600 |
| Total assets | US$ in thousands | 11,759,400 | 12,280,000 | 11,547,900 | 11,040,900 | 9,611,800 |
| Operating ROA | 8.86% | 7.60% | 9.14% | 10.31% | 7.04% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,042,100K ÷ $11,759,400K
= 8.86%
Equifax Inc's operating return on assets (Operating ROA) has shown variability over the past five years. The Operating ROA increased from 7.04% on December 31, 2020, to 10.31% on December 31, 2021, indicating improved efficiency in generating operating profits from its asset base. In 2022, the Operating ROA slightly decreased to 9.14%, suggesting a potential dip in operational performance compared to the previous year.
However, the Operating ROA then dropped to 7.60% on December 31, 2023, indicating a further decline in the company's ability to generate operating income relative to its asset base. This trend seemed to reverse in 2024, with the Operating ROA increasing to 8.86%, showing a partial recovery in operational efficiency.
Overall, while Equifax Inc's Operating ROA experienced fluctuations, it is essential for the company to maintain or improve this metric to ensure optimal utilization of assets in generating operating profits.