Green Plains Renewable Energy Inc (GPRE)

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	-47,459	-61,578	-98,948	25,508	-122,696
Total assets	US$ in thousands	1,782,170	1,939,320	2,123,130	2,159,760	1,578,920
Operating ROA		-2.66%	-3.18%	-4.66%	1.18%	-7.77%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-47,459K ÷ $1,782,170K
= -2.66%

Based on the provided data, the operating return on assets (ROA) for Green Plains Renewable Energy Inc has shown fluctuating trends over the past five years.

In December 2020, the operating ROA was at a negative 7.77%, indicating that the company's operating income generated from its assets was insufficient to cover its operating expenses.

However, there was an improvement in December 2021, with the operating ROA increasing to 1.18%. This suggests that the company's operating income relative to its assets improved, resulting in a positive return.

Subsequently, in December 2022, the operating ROA declined to -4.66%, indicating a decrease in operating income efficiency in utilizing its assets.

The trend continued with a further decrease in December 2023, where the operating ROA stood at -3.18%. This suggests that the company's operating performance relative to its assets deteriorated compared to the previous year.

By December 2024, although there was a slight improvement with the operating ROA at -2.66%, the company still struggled to generate positive returns from its assets.

Overall, the fluctuating trend in Green Plains Renewable Energy Inc's operating ROA indicates inconsistency in its operating income generation efficiency relative to its asset base. Further analysis of the company's operational strategies and financial management may be necessary to address the negative trend observed in recent years.