Howmet Aerospace Inc (HWM)
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 | 1,203,000 | 919,000 | 748,000 | 626,000 | 579,000 |
| Total assets | US$ in thousands | 10,428,000 | 10,255,000 | 10,219,000 | 11,443,000 | 17,562,000 |
| Operating ROA | 11.54% | 8.96% | 7.32% | 5.47% | 3.30% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,203,000K ÷ $10,428,000K
= 11.54%
The operating return on assets (Operating ROA) for Howmet Aerospace Inc has shown a gradual increasing trend over the past five years. The ratio increased from 9.42% in 2019 to 11.76% in 2023, indicating improved operational efficiency in generating profits from its assets. This upward trend suggests that the company has been effectively utilizing its assets to generate operating income.
The company's operating ROA of 11.76% in 2023 reflects that, for every dollar of assets invested in operations, the company generated a return of approximately 11.76 cents. This is a positive indicator of the company's operational performance and profitability.
It is worth noting that the operating ROA in 2023 is significantly higher than in previous years, which may indicate improved cost management, increased revenue generation, or a more efficient asset base. Overall, the increasing trend in operating ROA demonstrates Howmet Aerospace Inc's ability to efficiently deploy its assets to drive operational profitability over the years.
Peer comparison
Dec 31, 2023