Edison International (EIX)
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 | 2,627,000 | 2,600,000 | 2,064,000 | 1,844,000 | 1,483,000 | 1,340,000 | 1,256,000 | 1,337,000 | 1,477,000 | 1,650,000 | 1,399,000 | 1,314,000 | 1,217,000 | 710,000 | 1,725,000 | 1,725,000 | 1,775,000 | -553,000 | -450,000 | -530,000 |
| Total assets | US$ in thousands | 81,758,000 | 80,164,000 | 79,551,000 | 78,854,000 | 78,041,000 | 76,709,000 | 75,045,000 | 74,720,000 | 74,745,000 | 73,023,000 | 71,162,000 | 70,505,000 | 69,372,000 | 68,556,000 | 67,051,000 | 66,026,000 | 64,382,000 | 64,212,000 | 59,521,000 | 58,793,000 |
| Operating ROA | 3.21% | 3.24% | 2.59% | 2.34% | 1.90% | 1.75% | 1.67% | 1.79% | 1.98% | 2.26% | 1.97% | 1.86% | 1.75% | 1.04% | 2.57% | 2.61% | 2.76% | -0.86% | -0.76% | -0.90% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,627,000K ÷ $81,758,000K
= 3.21%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the efficiency of a company in generating operating income from its assets. It is calculated by dividing operating income by average total assets.
Analyzing the trend of Edison International's Operating ROA over the past eight quarters, we observe a generally increasing trend from Q1 2022 to Q4 2023. This improvement signals that the company has been more effective in utilizing its assets to generate operating income.
Specifically, the Operating ROA has gradually risen from 2.45% in Q1 2022 to 4.03% in Q4 2023. This indicates that for every dollar of assets employed, the company generated 4.03 cents of operating income in Q4 2023, compared to 2.45 cents in Q1 2022.
The consistent uptrend in Operating ROA suggests that Edison International has been successful in enhancing the efficiency of its asset utilization and improving its operational performance over time. This could be attributed to effective cost management, operational efficiency, strategic investments, or other factors that have positively impacted the company's profitability relative to its asset base.
In conclusion, the increasing trend in Edison International's Operating ROA reflects a positive operational performance and effective asset management, which bodes well for the company's financial health and sustainability in the long run.
Peer comparison
Dec 31, 2023