Ingredion Incorporated (INGR)
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 | 883,000 | 957,000 | 762,000 | 709,000 | 582,000 |
Total assets | US$ in thousands | 7,444,000 | 7,642,000 | 7,561,000 | 6,999,000 | 6,858,000 |
Operating ROA | 11.86% | 12.52% | 10.08% | 10.13% | 8.49% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $883,000K ÷ $7,444,000K
= 11.86%
Operating return on assets (Operating ROA) measures how efficiently a company generates profits from its assets used in its core operations. For Ingredion Incorporated, the trend of Operating ROA has shown improvement over the years.
In 2020, the Operating ROA stood at 8.49%, indicating that for every dollar of assets employed in its operations, Ingredion generated a return of 8.49 cents. This reflects the company's ability to effectively utilize its assets to generate profits.
Subsequently, in 2021, the Operating ROA increased to 10.13%, showing a positive trend in profitability and asset utilization. The company was able to improve its operating efficiency and profitability during that year.
In 2022, the Operating ROA remained relatively stable at 10.08%. This indicates that Ingredion maintained its efficiency in generating profits from its assets, although there was a slight decrease compared to the previous year.
The year 2023 saw a significant improvement in Operating ROA, reaching 12.52%. This demonstrates a substantial increase in the company's profitability relative to its asset base. Ingredion was able to generate higher returns from its operational assets during this period.
In 2024, the Operating ROA slightly decreased to 11.86% from the previous year's high. Despite the dip, the company still managed to maintain a strong performance in utilizing its assets to generate profits.
Overall, the trend of Ingredion's Operating ROA reflects a positive trajectory, with the company showing consistent improvement in efficiently generating returns from its operational assets over the years. This indicates effective management of assets and operations to drive profitability.
Peer comparison
Dec 31, 2024