Genpact Limited (G)
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 | 630,857 | 502,151 | 508,999 | 438,717 | 429,376 |
| Total assets | US$ in thousands | 4,805,710 | 4,588,810 | 4,975,270 | 4,873,510 | 4,454,180 |
| Operating ROA | 13.13% | 10.94% | 10.23% | 9.00% | 9.64% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $630,857K ÷ $4,805,710K
= 13.13%
The operating return on assets (operating ROA) of Genpact Ltd has shown a consistent upward trend over the past five years, with the ratio increasing from 8.94% in 2019 to 13.03% in 2023. This indicates that the company has been able to generate more operating income relative to its total assets each year.
The improvement in operating ROA suggests that Genpact Ltd has effectively utilized its assets to generate operating profits. This could be the result of better operational efficiency, cost management, and potentially higher revenues. A rising operating ROA is a positive sign for investors as it indicates the company's ability to generate profit from its core business activities.
Overall, the increasing trend in operating ROA for Genpact Ltd over the five-year period reflects positively on the company's operational performance and efficiency in generating returns from its assets.
Peer comparison
Dec 31, 2023