Equifax Inc (EFX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 933,800 | 864,700 | 861,200 | 928,900 | 1,055,900 | 1,132,100 | 1,162,400 | 1,163,800 | 1,138,000 | 1,055,300 | 986,500 | 847,300 | 676,600 | 554,100 | 471,300 | 418,300 | -335,500 | -336,400 | -393,900 | -314,100 |
| Total assets | US$ in thousands | 12,280,000 | 12,348,900 | 11,537,900 | 11,583,900 | 11,547,900 | 11,308,000 | 11,221,200 | 11,391,700 | 11,040,900 | 11,083,300 | 9,340,300 | 9,669,400 | 9,611,800 | 9,249,800 | 8,832,800 | 7,622,800 | 7,909,000 | 7,430,700 | 7,473,500 | 7,335,700 |
| Operating ROA | 7.60% | 7.00% | 7.46% | 8.02% | 9.14% | 10.01% | 10.36% | 10.22% | 10.31% | 9.52% | 10.56% | 8.76% | 7.04% | 5.99% | 5.34% | 5.49% | -4.24% | -4.53% | -5.27% | -4.28% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $933,800K ÷ $12,280,000K
= 7.60%
Operating ROA measures how efficiently Equifax, Inc. generates operating profit relative to its total assets. Looking at the trend over the past eight quarters, we observe a gradual decline in operating ROA from 10.36% in Q2 2022 to 7.60% in Q4 2023. This downward trend indicates a decrease in the company's ability to generate profit from its assets.
The operating ROA peaked at 10.36% in Q2 2022 and has steadily decreased since then, with the most recent quarter showing a value of 7.60%. This decline may suggest potential inefficiencies in asset utilization or decreasing profitability from operations. It is essential for Equifax, Inc. to investigate the reasons behind this trend and take appropriate measures to improve their operating efficiency and profitability in the future.