ITT Inc (ITT)

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 676,000 528,200 468,000 504,300 226,500
Total assets US$ in thousands 4,710,700 3,932,600 3,780,300 3,565,400 4,277,600
Operating ROA 14.35% 13.43% 12.38% 14.14% 5.30%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $676,000K ÷ $4,710,700K
= 14.35%

ITT Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years, increasing from 5.30% as of December 31, 2020, to 14.35% as of December 31, 2024. This indicates that the company has been able to generate more operating income relative to its total assets over the years.

The significant improvement in operating ROA reflects the company's effective management of its assets to generate operating profits. It suggests that ITT Inc has been successful in utilizing its resources efficiently to drive profitability.

Overall, the upward trend in operating ROA for ITT Inc is a positive indication of the company's operational efficiency and effectiveness in generating returns from its assets.