Edison International (EIX)
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 | 2,930,000 | 2,627,000 | 1,483,000 | 1,477,000 | 1,217,000 |
| Total assets | US$ in thousands | 22,067,000 | 81,758,000 | 78,041,000 | 74,745,000 | 69,372,000 |
| Operating ROA | 13.28% | 3.21% | 1.90% | 1.98% | 1.75% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,930,000K ÷ $22,067,000K
= 13.28%
Operating return on assets (Operating ROA) measures a company's ability to generate profits from its operating activities relative to its total assets. Analyzing the trend of Edison International's Operating ROA reveals the following insights:
1. From December 31, 2020, to December 31, 2021, there was a moderate increase in Operating ROA from 1.75% to 1.98%, indicating slight improvement in the company's operational efficiency in generating profits from its assets.
2. However, there was a slight decrease in Operating ROA from 1.98% on December 31, 2021, to 1.90% on December 31, 2022. This decline suggests a potential dip in the company's ability to effectively utilize its assets to generate operating income.
3. The trend changed significantly on December 31, 2023, with a notable increase in Operating ROA to 3.21%. This surge points towards a substantial improvement in operational performance, indicating that the company is generating higher profits relative to its total assets.
4. The most significant shift occurred on December 31, 2024, with a remarkable jump in Operating ROA to 13.28%. This surge signifies a substantial enhancement in the company's operational efficiency and profitability, reflecting a strong ability to generate substantial operating income from its asset base.
Overall, the trend of Edison International's Operating ROA indicates fluctuations in operational efficiency, with periods of improvement and decline, culminating in a substantial increase in recent years, suggesting a positive shift towards higher profitability relative to its asset base.
Peer comparison
Dec 31, 2024