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