Forward Air Corporation (FWRD)
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 | -1,062,940 | 88,210 | 265,976 | 159,301 | 73,924 |
| Total assets | US$ in thousands | 2,802,640 | 2,979,530 | 1,208,080 | 1,117,820 | 1,047,770 |
| Operating ROA | -37.93% | 2.96% | 22.02% | 14.25% | 7.06% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-1,062,940K ÷ $2,802,640K
= -37.93%
Forward Air Corporation's operating return on assets (ROA) has shown fluctuations over the past five years. In December 2020, the operating ROA stood at 7.06%, exhibiting a moderate level of profitability. However, this metric improved significantly to 14.25% by December 2021, indicating an enhanced operational performance. The trend continued positively as the operating ROA further increased to 22.02% by December 2022, signaling strong profitability.
However, there was a notable decline in performance by December 2023, with the operating ROA dropping to 2.96%. This decrease suggests a potential decrease in efficiency or profitability in the company's operations during that period. Furthermore, by December 2024, the operating ROA turned sharply negative at -37.93%, indicating that Forward Air Corporation may have incurred substantial operating losses relative to its assets during that year.
Overall, while there have been fluctuations in Forward Air Corporation's operating ROA over the years, it is crucial for the company to closely monitor and address the factors influencing these fluctuations to maintain sustainable profitability and operational efficiency in the long term.
Peer comparison
Dec 31, 2024