FMC Corporation (FMC)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 656,400 617,700 463,700 318,000 195,800 357,200 532,900 845,000 1,106,100 1,005,700 1,025,500 977,700 959,200 868,200 833,800 819,200 853,700 778,800 754,200 744,500
Total assets US$ in thousands 11,653,300 12,218,700 12,130,700 11,978,400 11,926,200 10,956,400 11,951,700 11,732,100 11,171,300 10,764,700 11,044,200 10,904,800 10,581,300 10,410,200 10,942,100 10,423,300 10,186,400 9,772,200 9,993,700 10,189,200
Operating ROA 5.63% 5.06% 3.82% 2.65% 1.64% 3.26% 4.46% 7.20% 9.90% 9.34% 9.29% 8.97% 9.07% 8.34% 7.62% 7.86% 8.38% 7.97% 7.55% 7.31%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $656,400K ÷ $11,653,300K
= 5.63%

Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating profits relative to its total assets. For FMC Corporation, the operating ROA has shown fluctuations over the past few quarters.

From March 2020 to December 2022, FMC Corporation experienced a steady increase in its operating ROA, reaching a peak of 9.90% in December 2022. This indicates that the company was effectively utilizing its assets to generate operating income during this period.

However, starting from March 2023, there was a significant decline in FMC Corporation's operating ROA, dropping to as low as 1.64% by December 2023. This sharp decrease suggests potential inefficiencies in the company's operations or a decline in profitability relative to its asset base.

Thereafter, there was a gradual improvement in operating ROA from March 2024 to December 2024, indicating that FMC Corporation may have taken steps to improve its operational efficiency and profitability.

Overall, FMC Corporation should continue monitoring its operating ROA closely to ensure effective asset utilization and sustainable profitability in the future.