Hexcel Corporation (HXL)

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	186,100	215,300	175,200	51,800	14,100
Total assets	US$ in thousands	2,725,600	2,918,500	2,837,300	2,819,400	2,917,800
Operating ROA		6.83%	7.38%	6.17%	1.84%	0.48%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $186,100K ÷ $2,725,600K
= 6.83%

Hexcel Corporation's operating return on assets (ROA) has shown a positive trend over the years based on the provided data. In December 31, 2020, the operating ROA was at 0.48%, indicating a relatively low profitability on assets. However, there has been a significant improvement in the following years. By December 31, 2021, the operating ROA increased to 1.84%, reflecting a more efficient utilization of assets to generate operating profits.

The trend continued to improve in the subsequent years, with the operating ROA reaching 6.17% by December 31, 2022, and further increasing to 7.38% by December 31, 2023. These values suggest a substantial enhancement in the company's operational efficiency and profitability, showcasing Hexcel's ability to generate higher returns from its assets.

Although there was a slight decrease in operating ROA to 6.83% by December 31, 2024, it is important to note that the overall trend indicates a positive performance in terms of operating efficiency and asset utilization. This improvement in operating ROA reflects positively on Hexcel Corporation's management of its assets to generate operating income, indicating a potentially stronger financial position and profitability in the years to come.