Huntington Ingalls Industries Inc (HII)
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 | 781,000 | 565,000 | 513,000 | 799,000 | 736,000 |
| Total assets | US$ in thousands | 11,215,000 | 10,857,000 | 10,627,000 | 8,157,000 | 7,031,000 |
| Operating ROA | 6.96% | 5.20% | 4.83% | 9.80% | 10.47% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $781,000K ÷ $11,215,000K
= 6.96%
Huntington Ingalls Industries Inc's operating return on assets (operating ROA) has exhibited fluctuations over the years based on the provided data. The operating ROA decreased from 10.57% in 2019 to 9.39% in 2020. However, there was a further decline to 4.42% in 2021, indicating a significant drop in the company's ability to generate operating profit from its assets during that period.
Subsequently, there was a slight improvement in operating ROA to 4.75% in 2022, followed by a more notable increase to 5.56% in 2023. The upward trend in 2023 suggests an enhanced efficiency in utilizing its assets to generate operating income compared to the previous years.
These variations in operating ROA reflect changes in Huntington Ingalls Industries Inc's operational effectiveness and profitability relative to its asset base over the five-year period, demonstrating the company's ability to adapt to market conditions and improve its asset utilization efficiency.
Peer comparison
Dec 31, 2023