Equifax Inc (EFX)
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 | 933,600 | 1,056,000 | 1,138,000 | 676,600 | -335,400 |
| Total assets | US$ in thousands | 12,280,000 | 11,547,900 | 11,040,900 | 9,611,800 | 7,909,000 |
| Operating ROA | 7.60% | 9.14% | 10.31% | 7.04% | -4.24% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $933,600K ÷ $12,280,000K
= 7.60%
Equifax, Inc.'s operating return on assets (operating ROA) has shown some fluctuations over the past five years. In 2023, the operating ROA was 7.60%, which was a decrease from the previous year's 9.14%. However, compared to 2020 when the operating ROA was 7.04%, there has been an improvement. The highest operating ROA in the table was in 2021 at 10.31%, indicating a strong performance in generating operating income relative to its total assets.
It's worth noting that in 2019, Equifax had a negative operating ROA of -4.24%, which suggests the company faced challenges in effectively utilizing its assets to generate operating income. Overall, the trend shows some volatility in operating ROA, with fluctuations in performance over the years.
Further analysis would be needed to understand the factors driving these changes in operating ROA and assess the company's efficiency in generating profits from its asset base.