FMC Corporation (FMC)
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 | 555,600 | 932,000 | 1,041,800 | 1,145,500 | 1,144,300 | 1,021,800 | 1,026,900 | 1,078,400 | 1,034,500 | 909,400 | 889,700 | 870,200 | 902,200 | 867,400 | 831,300 | 831,200 | 821,600 | 887,000 | 832,200 | 697,700 |
| Total assets | US$ in thousands | 11,926,200 | 10,956,400 | 11,951,700 | 11,732,100 | 11,171,300 | 10,764,700 | 11,044,200 | 10,904,800 | 10,673,100 | 10,410,200 | 10,942,100 | 10,423,300 | 10,186,400 | 9,772,200 | 9,993,700 | 10,189,200 | 9,872,700 | 9,803,800 | 9,824,500 | 9,946,000 |
| Operating ROA | 4.66% | 8.51% | 8.72% | 9.76% | 10.24% | 9.49% | 9.30% | 9.89% | 9.69% | 8.74% | 8.13% | 8.35% | 8.86% | 8.88% | 8.32% | 8.16% | 8.32% | 9.05% | 8.47% | 7.01% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $555,600K ÷ $11,926,200K
= 4.66%
The trend of FMC Corp.'s operating return on assets (operating ROA) over the past eight quarters shows a general downward trajectory. Starting at 11.08% in Q4 2022, the operating ROA gradually declined to 6.44% in Q4 2023. This trend indicates that the company may be experiencing challenges in generating operating income relative to its assets.
The decreasing operating ROA could be attributed to various factors such as declining revenue, increasing operating expenses, or inefficient asset utilization. It is essential for FMC Corp. to assess the underlying reasons for this trend and implement strategies to improve its operating performance and efficiency in utilizing its assets. Additionally, the company may need to focus on enhancing revenue generation and cost management to potentially increase its operating ROA in the future quarters.
Peer comparison
Dec 31, 2023