Element Solutions Inc (ESI)
Operating return on assets (Operating ROA)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 350,300 | 350,700 | 331,300 | 235,400 | 185,000 | 173,600 | 178,200 | 258,300 | 296,200 | 325,300 | 325,700 | 315,000 | 295,500 | 299,900 | 319,400 | 309,500 | 278,000 | 232,700 | 234,300 | 242,600 |
| Total assets | US$ in thousands | 4,794,600 | 4,873,900 | 5,098,200 | 4,982,400 | 4,912,200 | 4,974,100 | 4,968,800 | 5,061,000 | 4,926,500 | 4,903,700 | 4,869,700 | 5,009,700 | 5,128,800 | 5,138,400 | 5,182,900 | 4,643,800 | 4,476,700 | 4,483,400 | 4,326,800 | 4,218,700 |
| Operating ROA | 7.31% | 7.20% | 6.50% | 4.72% | 3.77% | 3.49% | 3.59% | 5.10% | 6.01% | 6.63% | 6.69% | 6.29% | 5.76% | 5.84% | 6.16% | 6.66% | 6.21% | 5.19% | 5.42% | 5.75% |
March 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $350,300K ÷ $4,794,600K
= 7.31%
The operating return on assets (ROA) for Element Solutions Inc. exhibits notable fluctuations over the analyzed period. From June 30, 2020, through March 31, 2021, the operating ROA gradually declined from 5.75% to a low of 5.19%, indicating a slight reduction in operating efficiency relative to the company’s assets during that interval. Subsequently, a recovery trend commenced, with the figure rising to 6.66% by June 30, 2021, and maintaining a generally upward trajectory through 2022, reaching a peak of 6.69% in September 2022. This upward movement suggests an improvement in operational efficiency relative to asset base during this period.
However, starting from the latter part of 2022, the operating ROA begins to decline, dropping from 6.63% as of December 31, 2022, to 6.01% by March 31, 2023, followed by a more pronounced decrease to 5.10% on June 30, 2023. This decline indicates reduced operational profitability or increased asset utilization inefficiencies.
The most significant decline occurs in the third quarter of 2023, with the ROA falling sharply to 3.59% in September 2023 and further to 3.49% by December 31, 2023. This steep reduction could be attributed to operational challenges, market conditions, or strategic shifts affecting profitability relative to assets.
In 2024, the operating ROA begins to recover, rising to 3.77% at the close of the first quarter, then increasing further to 4.72% in June, and continuing upward momentum with 6.50% in September and reaching 7.20% by December 2024. The upward trend in late 2024 suggests an improvement in operational efficiency or profitability enhancements.
As of the first quarter of 2025, the operating ROA reaches 7.31%, marking the highest observed value within the provided period, indicating an elevated level of operating profitability in relation to assets.
Overall, the operating ROA for Element Solutions Inc. illustrates periods of growth and contraction, with notable peaks around mid-2021 and late 2024, and significant downturns in mid-2023. The recent upward trend towards the end of 2024 and into the first quarter of 2025 signals a potential recovery and improved operational performance relative to the company's asset base.
Peer comparison
Mar 31, 2025