Expeditors International of Washington Inc (EXPD)

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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	939,933	1,070,241	1,381,095	1,638,580	1,824,371	2,118,194	2,080,908	1,985,571	1,909,326	1,567,608	1,329,916	1,166,897	940,437	838,966	793,571	738,146	766,692	803,359	799,963	791,346
Total assets	US$ in thousands	4,523,810	4,578,120	4,564,040	5,332,580	5,590,430	6,607,530	7,361,140	7,955,990	7,609,930	7,076,380	5,953,170	5,455,000	4,927,500	4,358,550	3,810,180	3,509,970	3,691,880	3,706,450	3,646,990	3,642,910
Operating ROA		20.78%	23.38%	30.26%	30.73%	32.63%	32.06%	28.27%	24.96%	25.09%	22.15%	22.34%	21.39%	19.09%	19.25%	20.83%	21.03%	20.77%	21.67%	21.93%	21.72%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $939,933K ÷ $4,523,810K
= 20.78%

Operating return on assets (operating ROA) is a key financial metric that indicates the efficiency of Expeditors International Of Washington, Inc. in generating operating income from its assets. Looking at the trend over the past eight quarters, there are some notable observations:

1. The operating ROA has shown a general decreasing trend from Q4 2022 to Q4 2023, starting at 32.63% and declining to 20.78%. This signals a potential decrease in the company's ability to generate operating income relative to its total assets over time.

2. Despite the overall decreasing trend, there were temporary spikes in Q3 2023 and Q2 2023, reaching 23.38% and 30.26%, respectively. These spikes indicate short-term improvements in operating efficiency during those quarters.

3. The highest operating ROA was recorded in Q4 2022 at 32.63%, suggesting a period of strong performance in generating operating income relative to assets. However, there was a gradual decline in subsequent quarters.

4. The most recent operating ROA in Q4 2023, at 20.78%, is the lowest within the timeframe, indicating a potential deterioration in the company's operating efficiency in converting assets into operating income.

In conclusion, the analysis of Expeditors International Of Washington, Inc.'s operating ROA reveals a declining trend over the past eight quarters, with fluctuations and temporary improvements observed in certain periods. This trend may indicate the need for the company to focus on enhancing operational efficiency and optimizing the utilization of its assets to improve profitability in the future.