Eastman Chemical Company (EMN)
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 | 1,304,000 | 1,096,000 | 1,254,000 | 1,880,000 | 968,000 |
| Total assets | US$ in thousands | 15,213,000 | 14,633,000 | 14,667,000 | 15,519,000 | 16,083,000 |
| Operating ROA | 8.57% | 7.49% | 8.55% | 12.11% | 6.02% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,304,000K ÷ $15,213,000K
= 8.57%
The operating return on assets (operating ROA) of Eastman Chemical Company has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The operating ROA increased from 6.02% in 2020 to 12.11% in 2021, indicating a significant improvement in the company's ability to generate operating profits relative to its assets.
However, in the following years, the operating ROA experienced some volatility. It decreased to 8.55% in 2022, followed by a further decline to 7.49% in 2023. This downward trend suggests potential challenges in efficiently utilizing the company's assets to generate operating income during those periods.
The operating ROA then rebounded to 8.57% by the end of 2024, showing a slight improvement compared to the previous year. Overall, while there have been fluctuations in the operating ROA of Eastman Chemical Company, the company has generally demonstrated a reasonable ability to generate operating profits relative to its asset base over the five-year period.
Peer comparison
Dec 31, 2024