Chart Industries Inc (GTLS)
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 | 390,700 | 151,500 | 88,500 | 92,200 | 52,000 |
| Total assets | US$ in thousands | 9,102,400 | 5,901,900 | 3,043,800 | 2,570,500 | 2,481,400 |
| Operating ROA | 4.29% | 2.57% | 2.91% | 3.59% | 2.10% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $390,700K ÷ $9,102,400K
= 4.29%
Operating Return on Assets (Operating ROA) is an important financial ratio that provides insights into how efficiently a company generates operating profits relative to its total assets.
Analyzing Chart Industries Inc's Operating ROA over the past five years, we observe fluctuations in the ratio. In 2023, the Operating ROA increased to 4.29% from 2.57% in 2022, indicating an improvement in the company's ability to generate operating income from its assets. This could be attributed to increased operational efficiency or better asset utilization.
Comparing the 2023 figure with previous years, we note that the Operating ROA of 4.29% is higher than the figures in 2021, 2020, and 2019. This suggests that Chart Industries Inc was able to achieve a better return on its assets in 2023 compared to the preceding years.
However, it is essential to delve deeper into the reasons behind this improvement in Operating ROA in 2023 to determine whether it is sustainable and driven by operational improvements or other external factors. Further analysis of the company's financial statements and operational performance would provide more insights into the drivers of this increase in Operating ROA and help assess the overall financial health and efficiency of Chart Industries Inc.