ITT Inc (ITT)
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 | 528,200 | 468,000 | 504,300 | 226,500 | 411,400 |
| Total assets | US$ in thousands | 3,932,600 | 3,780,300 | 3,565,400 | 4,277,600 | 4,107,700 |
| Operating ROA | 13.43% | 12.38% | 14.14% | 5.30% | 10.02% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $528,200K ÷ $3,932,600K
= 13.43%
To analyze ITT Inc's operating return on assets (operating ROA) over the past five years, we observe a fluctuating trend. In 2023, the operating ROA improved to 13.43%, indicating that the company generated 13.43 cents of operating income for every dollar of assets. This represents an increase from 2022 when the operating ROA was 12.10%.
Looking further back, in 2021, the operating ROA was relatively high at 14.41%, demonstrating strong operational performance and efficient asset utilization. However, in 2020, the operating ROA dropped to 6.63%, reflecting a decrease in profitability relative to the asset base.
In 2019, ITT Inc's operating ROA was 9.55%, showing a moderate level of return on assets. Overall, the trend in operating ROA suggests some variability in the company's ability to generate profits from its assets over the five-year period, with improvements seen in 2023 compared to the preceding years.
Peer comparison
Dec 31, 2023