Howmet Aerospace Inc (HWM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,655,000 | 1,536,000 | 1,422,000 | 1,287,000 | 1,203,000 | 1,097,000 | 951,000 | 907,000 | 852,000 | 779,000 | 823,000 | 789,000 | 748,000 | 822,000 | 690,000 | 557,000 | 767,000 | 962,000 | 1,215,000 | 1,060,000 |
| Total assets | US$ in thousands | 10,519,000 | 10,558,000 | 10,679,000 | 10,410,000 | 10,428,000 | 10,166,000 | 10,233,000 | 10,174,000 | 10,255,000 | 9,929,000 | 10,052,000 | 10,129,000 | 10,219,000 | 10,357,000 | 10,379,000 | 10,971,000 | 11,446,000 | 11,339,000 | 11,363,000 | 18,465,000 |
| Operating ROA | 15.73% | 14.55% | 13.32% | 12.36% | 11.54% | 10.79% | 9.29% | 8.91% | 8.31% | 7.85% | 8.19% | 7.79% | 7.32% | 7.94% | 6.65% | 5.08% | 6.70% | 8.48% | 10.69% | 5.74% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,655,000K ÷ $10,519,000K
= 15.73%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. A higher operating ROA indicates that the company is utilizing its assets efficiently to generate income.
Analyzing the data provided for Howmet Aerospace Inc, we can observe fluctuations in the Operating ROA over the quarters. The company's Operating ROA has shown a generally increasing trend from March 31, 2020, to December 31, 2024. The ratio starts at 5.74% in March 31, 2020, and consistently rises to 15.73% by December 31, 2024.
The upward trajectory in Operating ROA signifies an improvement in the company's operational efficiency and profitability over the period under review. This indicates that Howmet Aerospace Inc is effectively managing and utilizing its operational assets to generate higher returns for its shareholders.
It is important for investors and stakeholders to monitor the Operating ROA trend over time as it reflects the company's ability to generate profits from its operational activities relative to its asset base. The increasing trend in Howmet Aerospace Inc's Operating ROA is a positive sign of operational efficiency and financial performance.
Peer comparison
Dec 31, 2024