Haverty Furniture Companies Inc (HVT)
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 | 67,126 | 117,839 | 118,250 | 111,504 | 27,774 |
| Total assets | US$ in thousands | 654,133 | 649,049 | 686,290 | 680,372 | 560,072 |
| Operating ROA | 10.26% | 18.16% | 17.23% | 16.39% | 4.96% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $67,126K ÷ $654,133K
= 10.26%
Haverty Furniture Companies Inc's operating return on assets (operating ROA) is a key financial metric that indicates the company's ability to generate profits from its operating activities relative to its total assets.
The trend in operating ROA over the past five years shows variability, with values ranging from 4.96% in 2019 to 18.16% in 2022. In 2023, the operating ROA decreased to 10.26%, indicating a decline in the company's profitability generated from its operating activities relative to its assets compared to the prior year.
While a higher operating ROA suggests efficient utilization of assets to generate operating profits, the decreasing trend observed in 2023 may raise concerns about the company's operational efficiency or profitability levels. It is important for stakeholders to further investigate the reasons behind this decline and assess the company's operational performance and asset management strategies for potential improvement.
Peer comparison
Dec 31, 2023