Enovis Corp (ENOV)
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 | -65,709 | -71,178 | -62,799 | -66,182 | 203,612 |
| Total assets | US$ in thousands | 4,509,330 | 4,273,250 | 8,515,910 | 7,351,550 | 7,386,830 |
| Operating ROA | -1.46% | -1.67% | -0.74% | -0.90% | 2.76% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-65,709K ÷ $4,509,330K
= -1.46%
Operating return on assets (Operating ROA) is an important financial ratio that indicates how efficiently a company generates operating profit from its assets. Enovis Corp's Operating ROA has fluctuated over the past five years, indicating varying levels of operational efficiency.
In 2023, Enovis Corp's Operating ROA was -1.07%, suggesting that the company generated a negative return on its assets from its core operations during that period. This decline from the previous year's figure of -2.12% reflects a modest improvement in operational efficiency.
Comparing 2022 and 2021, there was a significant drop in Operating ROA from 3.34% to 2.73%. This decline may indicate a decrease in profitability or a less efficient utilization of assets in generating operating income during 2022.
In 2020 and 2019, Enovis Corp's Operating ROA stood at 2.73% and 3.64%, respectively. While these figures indicate positive returns on assets, the decreasing trend from 2019 to 2020 suggests a potential decline in operational efficiency or profitability during that period.
Overall, Enovis Corp's Operating ROA has shown fluctuations over the past five years, with negative returns in recent years and a general downward trend in operational efficiency. It will be crucial for the company to closely monitor and improve its operating performance to enhance its profitability and asset utilization in the future.
Peer comparison
Dec 31, 2023