ExlService Holdings Inc (EXLS)
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 | 238,755 | 192,162 | 155,881 | 110,022 | 76,453 |
| Total assets | US$ in thousands | 1,441,970 | 1,346,120 | 1,282,900 | 1,247,860 | 1,183,090 |
| Operating ROA | 16.56% | 14.28% | 12.15% | 8.82% | 6.46% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $238,755K ÷ $1,441,970K
= 16.56%
The operating return on assets (operating ROA) of ExlService Holdings Inc has shown a positive trend over the past five years. The ratio has consistently increased from 7.20% in 2019 to 16.56% in 2023. This indicates that the company has been effectively utilizing its assets to generate operating profits.
A higher operating ROA signifies that the company is efficient in generating operating income relative to its assets. It reflects management's ability to effectively deploy the company's resources to generate profits. The increasing trend in operating ROA is a positive indicator of the company's operational efficiency and profitability over the years.
Overall, the trend of increasing operating ROA for ExlService Holdings Inc suggests that the company has been successful in improving its operational performance and efficiency, which could potentially lead to enhanced shareholder value and financial strength.
Peer comparison
Dec 31, 2023