Forward Air Corporation (FWRD)

Operating return on assets (Operating ROA)

		Mar 31, 2025	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
Operating income (ttm)	US$ in thousands	13,230	-49,289	-43,076	-50,280	-17,028	99,213	157,628	213,800	259,134	265,976	256,538	227,349	193,928	159,301	128,050	109,084	80,874	69,852	81,978	89,157
Total assets	US$ in thousands	2,802,640	2,802,640	3,055,840	3,067,320	3,959,260	3,041,080	1,190,580	1,184,570	1,226,570	1,208,080	1,186,060	1,197,140	1,166,810	1,117,820	1,070,510	1,081,840	1,015,900	1,047,770	1,048,210	1,072,500
Operating ROA		0.47%	-1.76%	-1.41%	-1.64%	-0.43%	3.26%	13.24%	18.05%	21.13%	22.02%	21.63%	18.99%	16.62%	14.25%	11.96%	10.08%	7.96%	6.67%	7.82%	8.31%

March 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $13,230K ÷ $2,802,640K
= 0.47%

Operating ROA is a key financial metric that indicates how efficiently a company generates operating profits from its assets. The trend analysis of Forward Air Corporation's operating ROA reveals fluctuations over the quarters:

- From June 30, 2020, to December 31, 2022, the operating ROA showed a consistent upward trend, increasing steadily from 8.31% to 22.02%. This signifies that the company was effectively utilizing its assets to generate operating income during this period.

- However, from March 31, 2023, to December 31, 2024, the operating ROA experienced a sharp decline, dropping into negative territory (-1.76%). This indicates that the company's operating profits were insufficient to cover the asset base during these quarters.

- In the subsequent quarters, from March 31, 2025, the operating ROA recovered slightly, reaching 0.47%. This modest improvement suggests that the company may be taking steps to enhance efficiency in utilizing its assets to generate operating returns.

Overall, the fluctuating trend in Forward Air Corporation's operating ROA indicates periods of both efficiency and inefficiency in generating operating profits relative to its asset base. Further analysis of the company's operational performance and asset management strategies may provide insights into the factors driving these changes in operating ROA.