FMC Corporation (FMC)
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 | 555,600 | 1,144,300 | 1,034,500 | 896,900 | 821,600 |
| Total assets | US$ in thousands | 11,926,200 | 11,171,300 | 10,673,100 | 10,186,400 | 9,872,700 |
| Operating ROA | 4.66% | 10.24% | 9.69% | 8.80% | 8.32% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $555,600K ÷ $11,926,200K
= 4.66%
The operating return on assets (operating ROA) for FMC Corp. has exhibited a slight decline over the past five years, decreasing from 10.05% in 2019 to 6.44% in 2023. This may indicate a decrease in the efficiency with which the company is generating operating income from its assets.
Although there was a dip in 2023, it is important to note that FMC Corp. had relatively stable and strong operating ROA figures between 10.05% and 11.08% from 2019 to 2022. This suggests that the company was effectively utilizing its assets to generate operating profits during this period.
However, the decrease in the operating ROA in 2023 could raise concerns about the company's operational efficiency or changes in its asset management strategies. It would be important for stakeholders to further investigate the factors contributing to this decline to assess the overall financial health and performance of FMC Corp.
Peer comparison
Dec 31, 2023