Fortrea Holdings Inc. (FTRE)
Operating return on assets (Operating ROA)
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
---|---|---|---|---|---|
Operating income (ttm) | US$ in thousands | -161,900 | -117,000 | -88,700 | -6,200 |
Total assets | US$ in thousands | 3,579,200 | 3,663,700 | 3,565,400 | 4,240,200 |
Operating ROA | -4.52% | -3.19% | -2.49% | -0.15% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-161,900K ÷ $3,579,200K
= -4.52%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's operating performance in relation to its total assets. The trend of operating ROA for Fortrea Holdings Inc. over the four quarters of 2024 shows a declining pattern.
As of March 31, 2024, the operating ROA was -0.15%, indicating that the company generated a negative return on its assets during that period. This negative trend continued in the subsequent quarters, with operating ROA being -2.49% as of June 30, 2024, -3.19% as of September 30, 2024, and further declining to -4.52% as of December 31, 2024.
A consistently negative operating ROA suggests that Fortrea Holdings Inc. is struggling to efficiently utilize its assets to generate operating income. This may indicate operational inefficiencies, declining revenues, or increasing operating expenses relative to the total assets employed by the company.
Management should closely monitor and address the factors contributing to the declining operating ROA to improve the company's operational performance and overall financial health. Further analysis of the company's profitability, asset utilization, and cost management is recommended to identify specific areas for improvement.
Peer comparison
Dec 31, 2024