Warrior Met Coal Inc (HCC)
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 | 541,406 | 801,424 | 243,753 | -27,139 | 383,392 |
| Total assets | US$ in thousands | 2,357,060 | 2,028,100 | 1,464,210 | 1,393,940 | 1,344,260 |
| Operating ROA | 22.97% | 39.52% | 16.65% | -1.95% | 28.52% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $541,406K ÷ $2,357,060K
= 22.97%
Warrior Met Coal Inc's operating return on assets (operating ROA) has displayed fluctuations over the past five years. In 2023, the operating ROA stood at 23.32%, indicating that the company generated $0.2332 in operating income for every dollar of assets it holds. This represented a decrease from the previous year's figure of 41.27%, suggesting a decline in the company's operational efficiency in generating profits from its assets.
Comparing the 2023 operating ROA to the figures from 2021 and 2020, it can be observed that the company's performance has improved since those years when the operating ROA was 20.42% and -1.95%, respectively. In 2019, Warrior Met Coal Inc achieved a relatively high operating ROA of 28.52%, indicating strong profitability from its operational activities.
Overall, the fluctuating trend in Warrior Met Coal Inc's operating ROA over the years may indicate varying levels of operational efficiency and profitability. It is essential for the company to analyze the factors contributing to these changes and implement strategies to enhance its operational performance and optimize asset utilization for sustained profitability in the future.
Peer comparison
Dec 31, 2023