International Flavors & Fragrances Inc (IFF)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -2,110,000 | 531,000 | -1,604,000 | -1,536,000 | -1,326,000 | -1,258,000 | 1,025,000 | 922,000 | 585,000 | 512,000 | 364,000 | 374,000 | 566,000 | 582,529 | 617,193 | 697,130 | 665,000 | 643,720 | 618,324 | 572,896 |
| Total assets | US$ in thousands | 30,978,000 | 33,395,000 | 34,459,000 | 35,470,000 | 35,522,000 | 34,537,000 | 39,304,000 | 39,747,000 | 39,658,000 | 40,252,000 | 40,864,000 | 40,817,000 | 13,555,000 | 13,085,400 | 12,989,100 | 12,689,100 | 13,287,400 | 12,984,700 | 13,348,100 | 13,211,400 |
| Operating ROA | -6.81% | 1.59% | -4.65% | -4.33% | -3.73% | -3.64% | 2.61% | 2.32% | 1.48% | 1.27% | 0.89% | 0.92% | 4.18% | 4.45% | 4.75% | 5.49% | 5.00% | 4.96% | 4.63% | 4.34% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-2,110,000K ÷ $30,978,000K
= -6.81%
Based on the historical data provided for International Flavors & Fragrances Inc., the operating return on assets (operating ROA) has exhibited a declining trend over the past eight quarters. The operating ROA started at a high of 3.25% in Q3 2022 and has gradually decreased to 1.87% in Q4 2023. This downward trend indicates a decreasing efficiency in generating operating profits in relation to the total assets employed by the company.
The declining operating ROA could be a cause for concern as it suggests that International Flavors & Fragrances Inc. may be facing challenges in effectively utilizing its assets to generate profits from its core operations. Management should closely monitor and analyze the factors contributing to this trend, such as potential inefficiencies in operations, pricing pressures, or cost management issues.
It is important for the company to address the decreasing operating ROA trend to ensure sustainable profitability and efficient asset utilization in the future. Further analysis and strategic actions may be needed to improve operational performance and enhance the company's ability to generate returns from its assets.
Peer comparison
Dec 31, 2023