Flowserve Corporation (FLS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 462,279 | 333,553 | 197,219 | 270,759 | 250,277 |
| Total assets | US$ in thousands | 5,500,820 | 5,108,720 | 4,790,630 | 4,749,770 | 5,314,680 |
| Operating ROA | 8.40% | 6.53% | 4.12% | 5.70% | 4.71% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $462,279K ÷ $5,500,820K
= 8.40%
Flowserve Corporation's operating return on assets (Operating ROA) has shown improvement over the years. It increased from 4.71% as of December 31, 2020, to 8.40% as of December 31, 2024. This indicates that the company's operating profitability relative to its assets has been increasing, which is a positive trend.
The Operating ROA was at its lowest in 2022 at 4.12%, but then it rebounded significantly in the following years. The steady improvement in Operating ROA suggests that Flowserve Corporation has been utilizing its assets more efficiently to generate operating income.
Overall, the increasing trend in Operating ROA reflects positively on the company's operational performance and efficiency in generating profits from its assets. Investors and stakeholders may view this improvement as a sign of effective management and operational strategies at Flowserve Corporation.
Peer comparison
Dec 31, 2024