Edison International (EIX)
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 | 2,627,000 | 1,483,000 | 1,477,000 | 1,217,000 | 1,775,000 |
| Total assets | US$ in thousands | 81,758,000 | 78,041,000 | 74,745,000 | 69,372,000 | 64,382,000 |
| Operating ROA | 3.21% | 1.90% | 1.98% | 1.75% | 2.76% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,627,000K ÷ $81,758,000K
= 3.21%
Operating Return on Assets (Operating ROA) is a financial metric that indicates the efficiency of a company in generating profits from its operating assets. In the case of Edison International, the operating ROA has demonstrated a fluctuating trend over the past five years.
At the end of 2023, the operating ROA stood at 4.03%, marking an increase from the previous year's level of 3.65%. This improvement suggests that the company was able to generate a higher level of operating income relative to its assets during the period.
Looking back further, in 2021 and 2020, the operating ROA figures were 3.78% and 3.31% respectively. This indicates a slight decline in operational efficiency in 2020 compared to 2021. However, the subsequent increase in 2021 suggests a recovery in the company's ability to generate profits from its operating assets.
In 2019, the operating ROA was 3.43%, showing a relatively stable performance compared to the following years. Overall, the trend in operating ROA for Edison International reflects some variability, with fluctuations in efficiency in asset utilization and income generation over the past five years.
Peer comparison
Dec 31, 2023