Howmet Aerospace Inc (HWM)
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 | 1,633,000 | 1,203,000 | 919,000 | 748,000 | 626,000 |
| Total assets | US$ in thousands | 10,519,000 | 10,428,000 | 10,255,000 | 10,219,000 | 11,446,000 |
| Operating ROA | 15.52% | 11.54% | 8.96% | 7.32% | 5.47% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,633,000K ÷ $10,519,000K
= 15.52%
The operating return on assets (ROA) of Howmet Aerospace Inc has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The operating ROA increased from 5.47% in 2020 to 15.52% in 2024, indicating an improvement in the company's ability to generate operating profits from its assets.
This upward trend signals that Howmet Aerospace is becoming more efficient in utilizing its assets to generate operating income. A rising operating ROA is generally considered favorable as it implies that the company is operating more efficiently and effectively. The substantial increase in operating ROA from 2020 to 2024 suggests that the company has been successful in improving its operational performance and profitability over the period.
Overall, the trend in Howmet Aerospace Inc's operating ROA reflects positively on the company's operational efficiency and management effectiveness in generating profits from its asset base.
Peer comparison
Dec 31, 2024