Innospec Inc (IOSP)
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 | 161,600 | 163,700 | 171,900 | 184,000 | 187,300 | 176,200 | 157,500 | 148,200 | 132,100 | 126,000 | 111,400 | 21,000 | 33,700 | 48,100 | 69,500 | 154,600 | 149,900 | 149,000 | 144,200 | 140,800 |
| Total assets | US$ in thousands | 1,707,400 | 1,618,600 | 1,610,800 | 1,624,100 | 1,603,700 | 1,669,200 | 1,637,900 | 1,623,800 | 1,570,900 | 1,492,400 | 1,461,800 | 1,426,100 | 1,397,400 | 1,343,700 | 1,339,000 | 1,455,300 | 1,468,800 | 1,494,400 | 1,489,600 | 1,526,600 |
| Operating ROA | 9.46% | 10.11% | 10.67% | 11.33% | 11.68% | 10.56% | 9.62% | 9.13% | 8.41% | 8.44% | 7.62% | 1.47% | 2.41% | 3.58% | 5.19% | 10.62% | 10.21% | 9.97% | 9.68% | 9.22% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $161,600K ÷ $1,707,400K
= 9.46%
Operating Return on Assets (Operating ROA) measures a company's operating income generated relative to its total assets. It reflects the efficiency and profitability of a company in utilizing its assets to generate operating profits.
Analyzing the trend of Innospec Inc's Operating ROA over the past eight quarters reveals fluctuations in the company's operational efficiency. The Operating ROA ranged from 9.02% to 11.68% during this period, showing variability in the firm's ability to generate operating income from its asset base.
The company saw a gradual increase in Operating ROA from Q1 2022 to Q4 2022, peaking at 11.68% in Q4 2022. However, the trend reversed in the following quarters with a decline in Operating ROA, reaching a low of 9.46% in Q4 2023.
It is important for stakeholders to further investigate the reasons behind this fluctuation in Operating ROA. Factors such as changes in revenue, costs, asset utilization, and overall operational efficiency could have contributed to the observed variations.
Overall, the trend in Innospec Inc's Operating ROA demonstrates the importance of closely monitoring and analyzing a company's operational performance to assess its effectiveness in generating profits relative to the assets employed.
Peer comparison
Dec 31, 2023