Warrior Met Coal Inc (HCC)
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 | 254,890 | 541,406 | 801,424 | 243,753 | -27,139 |
| Total assets | US$ in thousands | 2,591,520 | 2,357,060 | 2,028,100 | 1,464,210 | 1,393,940 |
| Operating ROA | 9.84% | 22.97% | 39.52% | 16.65% | -1.95% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $254,890K ÷ $2,591,520K
= 9.84%
Warrior Met Coal Inc's operating return on assets (operating ROA) has shown a significant improvement over the years based on the provided data.
- In December 31, 2020, the operating ROA was -1.95%, indicating that the company had a negative return on its assets, implying inefficiency in utilizing its assets to generate operating income.
- By December 31, 2021, the operating ROA improved remarkably to 16.65%, reflecting a strong turnaround in the company's operational performance and asset utilization.
- The trend continued positively into December 31, 2022, with a substantial increase in operating ROA to 39.52%, demonstrating a substantial enhancement in operational efficiency and profitability generated from its assets.
- Despite a slight decline from the previous year, in December 31, 2023, the operating ROA remained relatively high at 22.97%, indicating continued effectiveness in generating operating income relative to its asset base.
- Finally, by December 31, 2024, the operating ROA decreased further to 9.84%, reflecting a drop in the company's operational efficiency and profitability generated from its assets compared to the previous year.
Overall, Warrior Met Coal Inc's operating ROA has shown volatility, with significant improvements in some years and declines in others. It is essential for the company to maintain a sustainable level of operating ROA to ensure long-term profitability and efficient asset utilization.
Peer comparison
Dec 31, 2024