Eastman Chemical Company (EMN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,394,000 | 1,217,000 | 1,124,000 | 1,068,000 | 1,056,000 | 1,010,000 | 1,075,000 | 1,221,000 | 1,285,000 | 1,705,000 | 1,771,000 | 1,718,000 | 1,742,000 | 1,462,000 | 1,347,000 | 1,095,000 | 1,095,000 | 1,061,000 | 1,133,000 | 1,336,000 |
| Total assets | US$ in thousands | 15,213,000 | 15,060,000 | 14,945,000 | 14,748,000 | 14,633,000 | 14,594,000 | 14,771,000 | 14,983,000 | 14,667,000 | 14,985,000 | 14,875,000 | 15,806,000 | 15,519,000 | 16,259,000 | 16,098,000 | 16,195,000 | 16,083,000 | 16,009,000 | 15,973,000 | 16,465,000 |
| Operating ROA | 9.16% | 8.08% | 7.52% | 7.24% | 7.22% | 6.92% | 7.28% | 8.15% | 8.76% | 11.38% | 11.91% | 10.87% | 11.22% | 8.99% | 8.37% | 6.76% | 6.81% | 6.63% | 7.09% | 8.11% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,394,000K ÷ $15,213,000K
= 9.16%
Operating Return on Assets (Operating ROA) is a financial ratio that indicates how efficiently a company is generating profits from its assets used in operations.
Analyzing the Operating ROA of Eastman Chemical Company over the period from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's operational efficiency. The ratio ranged from a low of 6.63% in September 30, 2020, to a high of 11.91% in June 30, 2022.
During the period under review, Eastman Chemical's operating ROA showed some volatility, with fluctuations in quarterly profitability relative to its asset base. The ratio improved notably in the latter part of 2021 and the first half of 2022, reaching double-digit percentages. However, the ratio declined slightly towards the end of 2022 and into 2023 before rebounding to 9.16% by December 31, 2024.
This fluctuation in the Operating ROA suggests that Eastman Chemical Company's ability to generate operating profits from its assets varied over the period, possibly due to changes in operational efficiency, asset utilization, or profitability. Further analysis of the company's financial performance alongside industry benchmarks would provide additional insights into its operational effectiveness and competitive positioning.
Peer comparison
Dec 31, 2024