ESAB Corp (ESAB)
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 | 447,450 | 404,166 | 329,065 | 306,214 | 202,126 |
| Total assets | US$ in thousands | 4,033,980 | 3,828,630 | 3,754,020 | 3,461,260 | 3,385,830 |
| Operating ROA | 11.09% | 10.56% | 8.77% | 8.85% | 5.97% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $447,450K ÷ $4,033,980K
= 11.09%
ESAB Corp's operating return on assets (operating ROA) has shown a positive trend over the past five years. It increased from 5.97% as of December 31, 2020, to 11.09% as of December 31, 2024. This improvement indicates that the company has been more efficient in generating operating profits relative to its total assets over the years.
The steady increase in operating ROA suggests that ESAB Corp has been effectively utilizing its assets to generate operating income. This could be a result of improved operational efficiency, better asset management, or increased profitability from its core business activities.
A high operating ROA signifies that the company is generating strong returns from its operational activities in relation to the size of its asset base. It could indicate effective cost management, revenue growth, or strategic investments that are yielding positive results.
Overall, the upward trend in ESAB Corp's operating ROA reflects positively on the company's ability to generate profits from its assets and indicates a healthy financial performance during the period under review.
Peer comparison
Dec 31, 2024