IDEX Corporation (IEX)
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 | 732,500 | 751,400 | 637,000 | 520,700 | 579,000 |
| Total assets | US$ in thousands | 5,865,200 | 5,511,900 | 4,917,200 | 4,414,400 | 3,813,900 |
| Operating ROA | 12.49% | 13.63% | 12.95% | 11.80% | 15.18% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $732,500K ÷ $5,865,200K
= 12.49%
Idex Corporation's operating return on assets (operating ROA) has exhibited some fluctuations over the five-year period from 2019 to 2023. The trend shows that in 2019, the operating ROA was relatively high at 15.73%, indicating efficient management of assets to generate operating income. However, there was a slight decline in 2020 to 12.06%, suggesting a potential decrease in operational efficiency or profitability.
Subsequently, in 2021, the operating ROA improved to 13.14%, indicating a positive trend in utilizing assets to generate operating earnings. The following year, in 2022, there was a further increase to 14.05%, which suggests continued efforts to enhance operational performance and maximize returns on assets.
However, in 2023, the operating ROA decreased to 12.67%, signaling a potential dip in the efficiency of asset utilization to generate operating profits compared to the previous year.
Overall, while Idex Corporation has shown fluctuations in its operating ROA over the past five years, it is essential for the company to consistently focus on optimizing asset management and operational efficiency to maintain and improve its profitability in the future.
Peer comparison
Dec 31, 2023