Flowserve Corporation (FLS)
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 | 333,553 | 329,391 | 283,352 | 247,036 | 197,217 | 177,047 | 210,192 | 222,022 | 270,758 | 280,927 | 310,887 | 282,177 | 250,278 | 259,408 | 276,664 | 331,230 | 398,257 | 367,201 | 324,814 | 273,507 |
| Total assets | US$ in thousands | 5,108,720 | 4,965,210 | 4,920,020 | 4,875,750 | 4,790,630 | 4,505,990 | 4,582,730 | 4,703,010 | 4,749,770 | 5,595,920 | 4,818,670 | 4,809,640 | 5,314,680 | 5,173,580 | 4,778,380 | 4,762,070 | 4,938,280 | 4,764,490 | 4,821,210 | 4,846,500 |
| Operating ROA | 6.53% | 6.63% | 5.76% | 5.07% | 4.12% | 3.93% | 4.59% | 4.72% | 5.70% | 5.02% | 6.45% | 5.87% | 4.71% | 5.01% | 5.79% | 6.96% | 8.06% | 7.71% | 6.74% | 5.64% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $333,553K ÷ $5,108,720K
= 6.53%
Flowserve Corp.'s operating return on assets (operating ROA) has shown a consistent positive trend over the past eight quarters. The operating ROA has gradually increased from 3.73% in Q4 2022 to 6.18% in Q4 2023, indicating an improvement in the company's operational efficiency and profitability.
The average operating ROA for the latest four quarters (Q1 2023 to Q4 2023) stands at 5.88%, reflecting the company's ability to generate an operating profit of $0.0588 for every dollar of assets employed in its operations. This signifies that Flowserve Corp. is effectively utilizing its assets to generate operating income.
Overall, the increasing trend in operating ROA suggests that Flowserve Corp. has been successful in enhancing its operational performance and efficiency, potentially leading to higher returns for its shareholders. However, it is essential for the company to maintain this positive momentum in the future to sustain and further improve its profitability.
Peer comparison
Dec 31, 2023