Eastman Chemical Company (EMN)
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 | 575,000 | 603,000 | 866,000 | 294,000 | 572,000 |
| Total assets | US$ in thousands | 14,633,000 | 14,667,000 | 15,519,000 | 16,083,000 | 16,008,000 |
| Operating ROA | 3.93% | 4.11% | 5.58% | 1.83% | 3.57% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $575,000K ÷ $14,633,000K
= 3.93%
Eastman Chemical Co's operating return on assets (ROA) has shown fluctuations over the past five years. In 2023, the operating ROA was at 7.48%, slightly lower than the previous year's figure of 7.82%. However, it remains higher compared to 2020 when the ROA stood at 6.81%. The peak operating ROA was recorded in 2021 at 9.35%, indicating strong operational efficiency and asset utilization. Despite some variability, Eastman Chemical Co has generally maintained a moderate to healthy level of operating ROA over the period under review, which suggests effective management of assets to generate operating profits. Economic conditions and strategic decisions may have influenced the fluctuations in the operating ROA during the period.
Peer comparison
Dec 31, 2023