Hexcel Corporation (HXL)

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	186,100	224,800	215,900	205,400	215,300	208,200	205,400	207,900	175,200	157,700	139,700	92,100	51,800	8,400	-52,000	-61,800	14,100	131,900	279,400	388,100
Total assets	US$ in thousands	2,725,600	2,862,300	2,827,600	2,821,200	2,918,500	2,846,300	2,921,900	2,907,300	2,837,300	2,775,700	2,819,400	2,853,500	2,819,400	2,872,600	2,917,400	2,893,500	2,917,800	2,972,100	3,222,500	3,433,300
Operating ROA		6.83%	7.85%	7.64%	7.28%	7.38%	7.31%	7.03%	7.15%	6.17%	5.68%	4.95%	3.23%	1.84%	0.29%	-1.78%	-2.14%	0.48%	4.44%	8.67%	11.30%

December 31, 2024 calculation

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

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's efficiency in generating operating profits from its assets. Hexcel Corporation's Operating ROA has shown a fluctuating trend over the period analyzed.

From March 31, 2020, to December 31, 2020, Hexcel experienced a significant decline in its Operating ROA from 11.30% to 0.48%. This indicates a decrease in the company's ability to generate operating income from its assets during this period.

However, starting from March 31, 2021, Hexcel's Operating ROA entered a period of negative values, suggesting that the company was not generating positive operating income relative to its assets. This trend continued until September 30, 2021.

From December 31, 2021, Hexcel began to show signs of improvement in its Operating ROA, with the ratio gradually increasing from 1.84% to 7.85% as of September 30, 2024. This positive trend indicates that the company's efficiency in generating operating profits from its assets has been improving.

Overall, while Hexcel Corporation faced challenges in the past, it has been able to recover and enhance its operational efficiency, as indicated by the sustained increase in its Operating ROA from negative values to a more favorable percentage by the end of the period analyzed.