ESAB Corp (ESAB)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 404,166 | 379,027 | 358,875 | 336,114 | 329,065 | |||
| Total assets | US$ in thousands | 3,828,630 | 3,756,040 | 3,862,840 | 3,849,140 | 3,754,020 | 3,539,900 | 3,673,700 | 3,781,350 |
| Operating ROA | 10.56% | 10.09% | 9.29% | 8.73% | 8.77% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $404,166K ÷ $3,828,630K
= 10.56%
ESAB Corp's operating return on assets (ROA) has shown a consistent and positive trend over the past five quarters. The operating ROA has improved from 9.38% in Q4 2022 to 11.19% in Q4 2023. This indicates that ESAB Corp has become more efficient in generating operating income relative to its assets over time.
The upward trend in operating ROA signifies that ESAB Corp has been effectively utilizing its assets to generate operating profits. A higher operating ROA indicates better operational efficiency and profitability. The company's management may have made strategic decisions that have positively impacted its ability to generate income from its assets.
Overall, the trend in ESAB Corp's operating ROA is a positive indicator of the company's operational performance and efficiency in utilizing its assets to drive profitability.
Peer comparison
Dec 31, 2023