Harley-Davidson Inc (HOG)
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 | 779,084 | 909,278 | 823,439 | 9,679 | 555,608 |
| Total assets | US$ in thousands | 12,140,600 | 11,492,500 | 11,051,100 | 12,010,600 | 10,528,200 |
| Operating ROA | 6.42% | 7.91% | 7.45% | 0.08% | 5.28% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $779,084K ÷ $12,140,600K
= 6.42%
Harley-Davidson, Inc.'s operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the company's operating ROA stood at 6.42%, showing a decrease from the previous year's 7.91% and 7.48% in 2021. However, this performance was an improvement compared to the low of 1.16% in 2020. The highest operating ROA in recent years was 5.58% in 2019.
The downward trend from 2021 to 2023 may indicate potential challenges in generating operating income relative to the company's asset base. It is essential for Harley-Davidson to closely monitor this metric to ensure efficiency in asset utilization and profitability. Further analysis of the company's operational strategies and financial performance drivers may be necessary to address any underlying issues impacting operating ROA and to sustain long-term profitability.
Peer comparison
Dec 31, 2023