Flowserve Corporation (FLS)
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 | 333,553 | 197,219 | 270,759 | 250,277 | 386,623 |
| Total assets | US$ in thousands | 5,108,720 | 4,790,630 | 4,749,770 | 5,314,680 | 4,938,280 |
| Operating ROA | 6.53% | 4.12% | 5.70% | 4.71% | 7.83% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $333,553K ÷ $5,108,720K
= 6.53%
Flowserve Corp.'s operating return on assets (ROA) has fluctuated over the past five years, ranging from a low of 3.73% in 2022 to a high of 8.04% in 2019. The company's operating ROA for the most recent year, 2023, stood at 6.18%. This indicates that Flowserve generated $0.0618 in operating income for every dollar of assets employed in its operations.
The trend in operating ROA suggests that the company's efficiency in generating operating income from its assets improved in 2023 compared to the previous year but was not as strong as in 2019. The increase from 2022 to 2023 indicates potential operational improvements, with the company better utilizing its assets to generate profits.
Analyzing operating ROA over multiple years provides insights into Flowserve's operational performance and asset utilization efficiency. Further investigation into the company's operational strategies and asset management practices could help explain the changes in operating ROA observed over the five-year period.
Peer comparison
Dec 31, 2023