EPAM Systems Inc (EPAM)

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	501,239	572,966	542,316	379,324	302,850
Total assets	US$ in thousands	4,352,360	4,009,150	3,523,230	2,721,330	2,244,210
Operating ROA		11.52%	14.29%	15.39%	13.94%	13.49%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $501,239K ÷ $4,352,360K
= 11.52%

Operating return on assets (ROA) measures how efficiently a company generates operating income from its assets. In the case of EPAM Systems Inc, the operating ROA has shown a declining trend over the past five years.

In 2019, the operating ROA was 13.49%, and it increased to 13.94% in 2020. However, since then, there has been a downward trend, with the ratio decreasing to 15.39% in 2021, 14.29% in 2022, and further to 12.11% in 2023. This decreasing trend indicates that the company may be experiencing challenges in maintaining or improving the efficiency of its operations in generating income from its assets.

It is essential for EPAM Systems Inc to closely monitor its operating ROA and identify areas for improvement to enhance operational efficiency and profitability in the future. Additionally, management should analyze the factors contributing to the decline in operating ROA and take necessary steps to address them in order to enhance overall performance and long-term sustainability.