Harley-Davidson Inc (HOG)
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 | 416,627 | 779,084 | 909,278 | 823,439 | 62,184 |
| Total assets | US$ in thousands | 11,881,600 | 12,140,600 | 11,492,500 | 11,051,100 | 12,010,600 |
| Operating ROA | 3.51% | 6.42% | 7.91% | 7.45% | 0.52% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $416,627K ÷ $11,881,600K
= 3.51%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates a company's efficiency in generating operating profits from its total assets. Analyzing the operating ROA trend for Harley-Davidson Inc from December 31, 2020, to December 31, 2024, reveals fluctuations in the company's asset utilization and operational performance.
In December 2020, Harley-Davidson Inc's operating ROA was 0.52%, indicating that the company generated $0.52 in operating income for every $100 of assets. The significant increase in operating ROA to 7.45% by December 31, 2021, reflects a substantial improvement in the company's operational efficiency and asset utilization.
By December 31, 2022, the operating ROA further improved to 7.91%, indicating continued strength in Harley-Davidson Inc's ability to generate operating income relative to its asset base. However, the operating ROA declined to 6.42% by December 31, 2023, suggesting a decrease in operational profitability or a less efficient use of assets during that period.
The trend continued in December 31, 2024, with the operating ROA decreasing further to 3.51%, signifying a decline in the company's operating profitability relative to its asset base. This decline may indicate challenges in maintaining operating efficiency or optimizing asset utilization.
Overall, the fluctuation in Harley-Davidson Inc's operating ROA from 2020 to 2024 suggests varying levels of operational performance and asset efficiency during this period, emphasizing the importance of consistently monitoring and improving these aspects to enhance overall financial performance.
Peer comparison
Dec 31, 2024