Innospec Inc (IOSP)

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 177,900 161,600 187,300 132,100 33,700
Total assets US$ in thousands 1,734,700 1,707,400 1,603,700 1,570,900 1,397,400
Operating ROA 10.26% 9.46% 11.68% 8.41% 2.41%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $177,900K ÷ $1,734,700K
= 10.26%

Operating return on assets (operating ROA) for Innospec Inc has exhibited a positive trend over the past five years, indicating the company's improved efficiency in generating profits from its assets. The ratio increased from 2.41% as of December 31, 2020, to 10.26% as of December 31, 2024.

This steady improvement suggests that Innospec has been effectively utilizing its assets to generate operating income. The notable increase in operating ROA from 2020 to 2022 reflects the company's success in enhancing operational performance and profitability. Although there was a slight decrease in 2023, the ratio remained at a healthy level, showcasing the company's ability to maintain efficient asset utilization.

Overall, the upward trend in operating ROA indicates that Innospec has been successful in managing its assets to drive operational efficiency and profitability, which is a positive signal for investors and stakeholders.