Itron Inc (ITRI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 128,867 | -7,439 | -79,299 | -10,395 | 132,683 |
| Total assets | US$ in thousands | 2,604,260 | 2,378,080 | 2,393,790 | 2,607,020 | 2,707,840 |
| Operating ROA | 4.95% | -0.31% | -3.31% | -0.40% | 4.90% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $128,867K ÷ $2,604,260K
= 4.95%
Itron Inc.'s operating return on assets (operating ROA) has fluctuated over the past five years, ranging from 0.88% to 6.66%. The trend indicates variability in the company's efficiency in generating operating profits relative to its total assets.
The significant increase in operating ROA from 2022 to 2023, from 0.88% to 6.66%, suggests a substantial improvement in the company's operating efficiency and profitability. This may have been driven by factors such as cost control measures, revenue growth, or operational optimization.
However, the operating ROA for 2023 is still lower than the levels seen in 2019 and 2020, which were 5.13% and 3.32%, respectively. This indicates that the company may not be as efficient in generating operating profits relative to its total assets as it was in those earlier years.
Overall, Itron Inc. should continue to monitor and potentially improve its operating ROA to ensure sustainable profitability and efficient asset utilization in the future. Further analysis is recommended to identify the specific drivers behind the fluctuations in operating ROA and to implement strategic measures to enhance performance.
Peer comparison
Dec 31, 2023