Element Solutions Inc (ESI)
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 | 343,900 | 173,600 | 325,300 | 299,900 | 181,000 |
| Total assets | US$ in thousands | 4,873,900 | 4,974,100 | 4,903,700 | 5,138,400 | 4,483,400 |
| Operating ROA | 7.06% | 3.49% | 6.63% | 5.84% | 4.04% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $343,900K ÷ $4,873,900K
= 7.06%
The Operating Return on Assets (Operating ROA) of Element Solutions Inc. demonstrates notable fluctuations over the period from December 31, 2020, to December 31, 2024. Starting at 4.04% in 2020, the metric shows an upward trend in the subsequent year, reaching 5.84% in 2021 and further increasing to 6.63% in 2022. This progression indicates an improvement in the company's operational efficiency in generating earnings from its assets during those years.
However, a decline is observed in 2023, where the Operating ROA drops significantly to 3.49%, suggesting a decrease in operational profitability or potential challenges in asset utilization during that period. Despite this setback, the metric recovers sharply in 2024, rising to 7.06%, which surpasses the earlier peak observed in 2022 and highlights a strong rebound in operational performance.
Overall, the trend reveals a pattern of growth culminating in a temporary dip followed by a robust resurgence in Operating ROA. The fluctuations may reflect varying operational conditions, strategic adjustments, or external factors impacting the company's asset productivity over these years. The recent rise to 7.06% in 2024 indicates a favorable improvement in operational efficiency relative to prior years.
Peer comparison
Dec 31, 2024