FMC Corporation (FMC)

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 651,600 679,200 1,059,400 962,000 850,500
Total assets US$ in thousands 11,653,300 11,926,200 11,171,300 10,581,300 10,186,400
Operating ROA 5.59% 5.70% 9.48% 9.09% 8.35%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $651,600K ÷ $11,653,300K
= 5.59%

The operating return on assets (Operating ROA) of FMC Corporation has displayed some fluctuations over the years. In December 2020, the Operating ROA stood at 8.35%, indicating that the company generated $0.0835 in operating income for every dollar of assets. This ratio increased to 9.09% by December 2021, suggesting improved efficiency in asset utilization.

However, in December 2022, the Operating ROA further increased to 9.48%, which reflects the company's ability to generate more operating income from its assets. The ratio then experienced a decline to 5.70% by December 2023, signaling a potential decrease in profitability relative to its asset base.

By December 2024, the Operating ROA decreased slightly to 5.59%, which reinforces the trend of declining profitability. It is important for FMC Corporation to closely monitor and assess its asset utilization efficiency to improve its Operating ROA and enhance overall profitability in the future.