GE Vernova LLC (GEV)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 103,000 | 155,000 | -840,000 | -1,020,000 |
| Total assets | US$ in thousands | 50,853,000 | 48,052,000 | 47,872,000 | 47,194,000 |
| Operating ROA | 0.20% | 0.32% | -1.75% | -2.16% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $103,000K ÷ $50,853,000K
= 0.20%
Based on the data provided, GE Vernova LLC's operating return on assets (operating ROA) has shown variability over the past few quarters. The company reported a negative operating ROA of -2.16% as of December 31, 2023, which improved slightly to -1.75% by March 31, 2024. Subsequently, there was a notable turnaround as the operating ROA turned positive, reaching 0.32% by June 30, 2024, and slightly decreasing to 0.20% by September 30, 2024.
The negative operating ROA figures at the end of 2023 and early 2024 indicate that the company's operating income generated by its assets was insufficient to cover its operating expenses and might have been impacted by various factors such as declining sales or increasing costs.
However, the positive operating ROA figures in the following quarters suggest an improvement in operational efficiency, indicating that the company started to generate more operating income from its asset base. This turnaround could be attributed to cost-cutting measures, increased sales, or better asset utilization.
It is important for GE Vernova LLC to sustain or further improve its operating ROA to ensure long-term profitability and competitiveness in its industry. Monitoring this ratio over time can provide insights into the company's operational performance and efficiency in utilizing its assets to generate profits.
Peer comparison
Sep 30, 2024