Hertz Global Holdings Inc (HTZ)
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 | -1,070,000 | 756,000 | 2,073,000 | 2,056,000 | -1,056,000 |
| Total assets | US$ in thousands | 21,802,000 | 24,605,000 | 22,497,000 | 19,783,000 | 16,908,000 |
| Operating ROA | -4.91% | 3.07% | 9.21% | 10.39% | -6.25% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-1,070,000K ÷ $21,802,000K
= -4.91%
The operating return on assets (operating ROA) for Hertz Global Holdings Inc has fluctuated over the past five years.
- In December 31, 2020, the operating ROA was -6.25%, indicating that the company had a negative return from its operating activities relative to its total assets.
- By December 31, 2021, the operating ROA had improved significantly to 10.39%, demonstrating a reversal to profitability and efficiency in generating operating income from its assets.
- In the following year, by December 31, 2022, the operating ROA remained favorable at 9.21%, indicating continued positive performance in generating operating income relative to its assets.
- However, by December 31, 2023, there was a decline in the operating ROA to 3.07%, suggesting a decrease in the efficiency of utilizing assets to generate operating returns.
- The trend continued into December 31, 2024, where the operating ROA further declined to -4.91%, indicating a significant drop in the company's ability to generate operating income from its assets, potentially signaling operational challenges or inefficiencies.
Overall, the fluctuating trend in Hertz Global Holdings Inc's operating ROA over the five-year period indicates varying levels of operational efficiency and profitability in utilizing its assets to generate operating income. It is important for the company to closely monitor and address the factors impacting its operating ROA to enhance overall performance and sustainability.
Peer comparison
Dec 31, 2024