Genpact Limited (G)
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 | 702,061 | 630,857 | 502,151 | 508,999 | 438,717 |
| Total assets | US$ in thousands | 4,987,150 | 4,805,710 | 4,588,810 | 4,975,270 | 4,873,510 |
| Operating ROA | 14.08% | 13.13% | 10.94% | 10.23% | 9.00% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $702,061K ÷ $4,987,150K
= 14.08%
The operating return on assets (ROA) of Genpact Limited has shown a consistent upward trend over the past five years, reflecting improved operational efficiency and profitability. The operating ROA increased from 9.00% on December 31, 2020, to 14.08% on December 31, 2024. This indicates that for every dollar of assets utilized by the company to generate operating income, the return has been increasing steadily.
The steady increase in operating ROA suggests that Genpact Limited has been effectively utilizing its assets to generate operating profits, which is a positive sign for investors and creditors. A higher operating ROA indicates that the company is generating more operating income relative to its asset base, which can be seen as a measure of operational efficiency.
The rising trend in operating ROA also indicates that the company's management has been successful in implementing strategies to improve profitability and efficiency over time. This trend may be attributed to factors such as cost control measures, revenue growth initiatives, or operational improvements.
Overall, the increasing trend in Genpact Limited's operating return on assets reflects the company's ability to generate higher operating income from its asset base, which can be considered a positive indicator of its operational performance and financial health.
Peer comparison
Dec 31, 2024