Evergy Inc. Common Stock (EVRG)

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	1,282,400	1,267,200	1,354,900	1,143,900	1,185,800
Total assets	US$ in thousands	30,976,100	29,489,900	28,520,500	27,114,800	25,975,900
Operating ROA		4.14%	4.30%	4.75%	4.22%	4.57%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,282,400K ÷ $30,976,100K
= 4.14%

Evergy Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The operating ROA decreased from 4.57% in 2019 to 4.22% in 2020, before increasing to 4.75% in 2021. However, it subsequently declined to 4.42% in 2022 and further to 4.14% in 2023.

The fluctuation in operating ROA suggests that Evergy Inc's ability to generate operating profits from its assets has varied year-on-year. A higher operating ROA indicates better operating efficiency and profitability in utilizing the company's assets to generate earnings. Conversely, a declining trend in operating ROA may signal potential operational challenges or inefficiencies.

It is essential for Evergy Inc to closely monitor and analyze the factors that influence its operating ROA to ensure sustainable profitability and operational effectiveness in the future. Further examination of the company's operational performance and asset management strategies may help identify opportunities for improvement and optimization in generating returns from its assets.