International Flavors & Fragrances Inc (IFF)
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 | -2,110,000 | -1,326,000 | 585,000 | 566,000 | 665,000 |
| Total assets | US$ in thousands | 30,978,000 | 35,522,000 | 39,658,000 | 13,555,000 | 13,287,400 |
| Operating ROA | -6.81% | -3.73% | 1.48% | 4.18% | 5.00% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-2,110,000K ÷ $30,978,000K
= -6.81%
International Flavors & Fragrances Inc.'s operating return on assets (operating ROA) has shown a declining trend over the past five years, indicating a decrease in the company's ability to generate profit from its operating activities relative to its asset base. The operating ROA decreased from 5.25% in 2019 to 1.87% in 2023. This decline suggests that the company's operating profitability has weakened, which may be attributed to factors such as increased operating expenses, inefficient asset utilization, or declining operating margins. Investors and stakeholders should monitor this trend closely to assess the company's operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2023