Ingredion Incorporated (INGR)
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 | 957,000 | 912,000 | 881,000 | 843,000 | 762,000 | 691,000 | 681,000 | 690,000 | 310,000 | 387,000 | 368,000 | 259,000 | 582,000 | 589,000 | 601,000 | 656,000 | 664,000 | 652,000 | 642,000 | 667,000 |
| Total assets | US$ in thousands | 7,642,000 | 7,549,000 | 7,600,000 | 7,645,000 | 7,561,000 | 7,403,000 | 7,389,000 | 7,435,000 | 6,999,000 | 6,986,000 | 7,098,000 | 6,803,000 | 6,858,000 | 6,464,000 | 6,611,000 | 5,952,000 | 6,040,000 | 6,095,000 | 5,998,000 | 5,932,000 |
| Operating ROA | 12.52% | 12.08% | 11.59% | 11.03% | 10.08% | 9.33% | 9.22% | 9.28% | 4.43% | 5.54% | 5.18% | 3.81% | 8.49% | 9.11% | 9.09% | 11.02% | 10.99% | 10.70% | 10.70% | 11.24% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $957,000K ÷ $7,642,000K
= 12.52%
Operating Return on Assets (ROA) is a key financial ratio that measures a company's ability to generate profits from its operating activities relative to its total assets. It is calculated by dividing operating income by average total assets.
Examining Ingredion Inc's trend in operating ROA over the past eight quarters reveals a consistent improvement. The company's operating ROA has been gradually increasing from 9.08% in Q1 2022 to 12.56% in Q4 2023. This indicates that the company has been more effective in generating operating income from its assets over time.
The upward trend in operating ROA suggests that Ingredion Inc has been enhancing its operational efficiency and profitability. The improvement in operating ROA can be attributed to factors such as cost control, productivity enhancements, better asset utilization, and potentially a more favorable business environment.
A rising operating ROA generally reflects positively on a company's financial health and operational performance. It indicates that the company is effectively utilizing its assets to generate profits from its core business activities. Investors and stakeholders may view the improving trend in operating ROA as a sign of sound management and sustainable growth prospects for Ingredion Inc.
Peer comparison
Dec 31, 2023