JBTMarel Corp (JBTM)
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 | 118,400 | 164,700 | 132,600 | 125,600 | 163,100 |
| Total assets | US$ in thousands | 3,413,800 | 2,710,400 | 2,641,000 | 2,141,400 | 1,805,900 |
| Operating ROA | 3.47% | 6.08% | 5.02% | 5.87% | 9.03% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $118,400K ÷ $3,413,800K
= 3.47%
The operating return on assets (operating ROA) for JBTMarel Corp has experienced notable fluctuations over the specified period from December 31, 2020, to December 31, 2024. At the end of 2020, the operating ROA was 9.03%, indicating a relatively strong efficiency in generating operating income from the company's assets. However, this metric declined significantly to 5.87% by the end of 2021, representing a deterioration in operational efficiency or possibly increased asset base not proportionally matched by operating income.
The downward trend persisted into 2022, with the operating ROA decreasing further to 5.02%. This continuing decline suggests that the company faced ongoing challenges in maintaining its operational profitability relative to its asset base, or that asset utilization became less effective during this period.
In 2023, there was a modest recovery, with the operating ROA improving to 6.08%. This positive shift may indicate an operational improvement or strategic adjustments that enhanced asset efficiency, albeit it remained below the peak seen at the end of 2020.
Contrasting sharply with the previous years, the operating ROA for 2024 dropped significantly again, reaching 3.47%. This decline points to a reduction in operational profitability or potential expansion of assets without a corresponding increase in operating income, thereby reducing overall efficiency.
Overall, the trend demonstrates considerable volatility in JBTMarel Corp's operating efficiency, with a general decline from 2020 through 2024 despite temporary recoveries. Such fluctuations could be attributed to market conditions, strategic shifts, operational challenges, or asset management efficiencies, warranting further analysis to identify underlying causes.
Peer comparison
Dec 31, 2024