Huntington Ingalls Industries Inc (HII)
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 | 535,000 | 781,000 | 565,000 | 513,000 | 799,000 |
| Total assets | US$ in thousands | 12,141,000 | 11,215,000 | 10,857,000 | 10,627,000 | 8,157,000 |
| Operating ROA | 4.41% | 6.96% | 5.20% | 4.83% | 9.80% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $535,000K ÷ $12,141,000K
= 4.41%
Operating ROA for Huntington Ingalls Industries Inc has shown a fluctuating trend over the past five years. Starting at a robust 9.80% on December 31, 2020, the ratio declined to 4.83% by December 31, 2021, indicating a significant decrease in profitability generated from its assets. However, there was a slight improvement in operational efficiency by December 31, 2022, with the operating ROA rising to 5.20%. Subsequently, by December 31, 2023, the company managed to further enhance its operational performance, achieving an operating ROA of 6.96%. Nevertheless, the ratio declined slightly to 4.41% by December 31, 2024.
The fluctuations in the operating ROA suggest that Huntington Ingalls Industries Inc may have experienced challenges in effectively utilizing its assets to generate operating income consistently over the years. It will be important for the company to focus on improving operational efficiency and profitability to ensure sustainable growth and value creation for its stakeholders.
Peer comparison
Dec 31, 2024