Corning Incorporated (GLW)
Operating return on assets (Operating ROA)
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 890,000 | 898,000 | 954,000 | 1,165,000 | 1,438,000 | 1,835,000 | 2,095,000 | 2,180,000 | 2,112,000 | 2,105,000 | 1,810,000 | 1,132,000 | 509,000 | 180,000 | 288,000 | 765,000 | 1,306,000 | 1,623,000 | 1,780,000 | 1,801,000 |
| Total assets | US$ in thousands | 28,500,000 | 28,278,000 | 28,645,000 | 28,822,000 | 29,499,000 | 28,735,000 | 29,718,000 | 30,257,000 | 30,154,000 | 29,706,000 | 29,806,000 | 30,143,000 | 30,775,000 | 30,267,000 | 27,546,000 | 27,859,000 | 28,898,000 | 27,329,000 | 27,575,000 | 27,321,000 |
| Operating ROA | 3.12% | 3.18% | 3.33% | 4.04% | 4.87% | 6.39% | 7.05% | 7.20% | 7.00% | 7.09% | 6.07% | 3.76% | 1.65% | 0.59% | 1.05% | 2.75% | 4.52% | 5.94% | 6.46% | 6.59% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $890,000K ÷ $28,500,000K
= 3.12%
Based on the operating return on assets (operating ROA) data provided for Corning, Inc., we observe a general declining trend over the past year, moving from 7.18% in Q1 of 2022 to 3.12% in Q4 of 2023. This indicates a reduction in the company's ability to generate operating income from its assets over this period.
The operating ROA peaked at 7.02% in Q2 of 2022 and has since experienced a consistent downward trajectory. The decreasing trend in operating ROA suggests a potential inefficiency in utilizing the company's assets to generate operating profits.
A high operating ROA indicates effective asset utilization to generate operating income, whereas a declining trend like Corning, Inc.'s suggests challenges in maintaining profitability relative to the level of assets employed in the business operations.
It is important for Corning, Inc. to assess the factors contributing to the decrease in its operating ROA trend and take necessary steps to improve operational efficiency and profitability in order to enhance shareholder value and ensure long-term sustainability.
Peer comparison
Dec 31, 2023