Forward Air Corporation (FWRD)

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	88,210	247,591	159,301	73,924	112,416
Total assets	US$ in thousands	2,979,530	1,208,080	1,117,820	1,047,390	990,878
Operating ROA		2.96%	20.49%	14.25%	7.06%	11.35%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $88,210K ÷ $2,979,530K
= 2.96%

Operating return on assets (operating ROA) measures the efficiency of Forward Air Corporation in generating operating income relative to its total assets. The trend of operating ROA for Forward Air Corporation over the past five years shows fluctuations in performance.

In 2023, the operating ROA decreased significantly to 2.96% from 20.49% in 2022, indicating a notable decline in the company's ability to generate operating income per unit of assets. This substantial drop may raise concerns about the company's operational efficiency and profitability.

Comparing the 2023 operating ROA to earlier years, it is also lower than the 2021 and 2019 figures, further suggesting a less efficient utilization of assets to generate operating income. This downward trend in operating ROA since 2022 could signal potential challenges in optimizing asset utilization or managing operating expenses effectively.

It is noteworthy that while the company experienced a strong performance in 2022 with a high operating ROA of 20.49%, the subsequent decline in 2023 highlights the importance of monitoring and addressing factors impacting asset efficiency and profitability for sustainable performance in the future.