International Flavors & Fragrances Inc (IFF)

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	766,000	612,000	1,090,000	585,000	566,484
Total assets	US$ in thousands	28,667,000	30,978,000	35,390,000	39,678,000	13,555,700
Operating ROA		2.67%	1.98%	3.08%	1.47%	4.18%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $766,000K ÷ $28,667,000K
= 2.67%

The operating return on assets (ROA) of International Flavors & Fragrances Inc has shown fluctuations over the past five years. As of December 31, 2020, the operating ROA stood at 4.18%, indicating that the company generated $4.18 in operating income for every $100 of assets it owned.

However, by the end of 2021, the operating ROA dropped to 1.47%, suggesting a decline in the company's operational efficiency in utilizing its assets to generate operating profits. This could be a concerning trend for investors and stakeholders.

In 2022, the operating ROA improved to 3.08%, indicating a better utilization of assets to generate operating returns compared to the previous year. The company seemed to have made some improvements in its operational performance.

By the end of 2023, the operating ROA slightly decreased to 1.98%, showing a dip in the company's ability to efficiently generate operating income from its assets. It is essential for International Flavors & Fragrances Inc to closely monitor and address this decrease in operating efficiency.

In the most recent year, 2024, the operating ROA increased to 2.67%, demonstrating a recovery from the previous year's decline. The company appears to be making efforts to enhance its operational effectiveness and optimize asset utilization.

Overall, the fluctuating trend in International Flavors & Fragrances Inc's operating ROA indicates the importance of closely monitoring operational performance and asset management strategies to ensure sustained profitability and efficiency over time.