Energizer Holdings Inc (ENR)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 490,900 | -17,200 | 506,400 | 435,500 | 220,000 |
| Total assets | US$ in thousands | 4,509,600 | 4,572,100 | 5,007,500 | 5,728,300 | 5,449,600 |
| Operating ROA | 10.89% | -0.38% | 10.11% | 7.60% | 4.04% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $490,900K ÷ $4,509,600K
= 10.89%
The operating return on assets (operating ROA) is a crucial financial metric that indicates how efficiently a company generates operating profits from its assets. The trend of operating ROA for Energizer Holdings Inc from 2019 to 2023 reflects the company's operational performance and asset utilization.
In 2019, Energizer's operating ROA was 5.23%, showing that the company generated approximately 5.23 cents of operating profit for every dollar of assets employed in its operations. Over the following years, there was a consistent upward trend in the operating ROA. It increased from 5.23% in 2019 to 6.28% in 2020, 8.32% in 2021, 8.79% in 2022, and finally reached 8.87% in 2023.
This positive trend in operating ROA suggests that Energizer Holdings Inc has been effectively improving its operational efficiency and utilizing its assets to generate higher operating profits. It indicates that the company has been able to enhance its revenue generation and operational effectiveness in relation to the assets it holds.
The progressive increase in operating ROA from 2019 to 2023 demonstrates the management's ability to optimize asset utilization and operational performance, which may be attributed to factors such as effective cost management, revenue growth, and improved operational efficiency.
Overall, the upward trend in operating ROA reflects positively on Energizer Holdings Inc's ability to generate operating profits from its assets and indicates a potentially strong operational performance and asset management. However, it would be beneficial to further analyze the company's financial statements and operational strategies to gain deeper insights into the factors driving this improvement in operating ROA.
Peer comparison
Sep 30, 2023