Fortune Brands Innovations Inc. (FBIN)
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 | 614,900 | 774,300 | 811,100 | 567,700 | 698,500 |
| Total assets | US$ in thousands | 6,565,000 | 6,120,900 | 7,936,200 | 7,358,700 | 6,291,300 |
| Operating ROA | 9.37% | 12.65% | 10.22% | 7.71% | 11.10% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $614,900K ÷ $6,565,000K
= 9.37%
Fortune Brands Innovations Inc.'s operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA stands at 9.37%, exhibiting a decrease compared to the previous year's 12.65%. This decline suggests a decrease in the company's operating efficiency in generating profits from its assets in 2023.
However, it is important to note that the operating ROA of 9.37% is still higher than the levels recorded in 2020 and 2019, indicating some level of improvement in asset utilization compared to those years.
The company's operating ROA has not followed a consistent trend over the past five years, displaying variability in performance. It peaked in 2022 at 12.65% but saw a decline in 2023. This fluctuation could be influenced by changes in the company's operating income and the total assets on its balance sheet.
Overall, the decreasing trend in operating ROA from 2022 to 2023 warrants further scrutiny to identify the factors affecting the company's profitability and efficiency in utilizing its assets effectively.
Peer comparison
Dec 31, 2023