Kaiser Aluminum Corporation (KALU)
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 | 95,800 | 4,000 | 64,400 | 81,100 | 125,700 |
| Total assets | US$ in thousands | 2,267,400 | 2,288,800 | 2,422,400 | 1,864,700 | 1,526,200 |
| Operating ROA | 4.23% | 0.17% | 2.66% | 4.35% | 8.24% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $95,800K ÷ $2,267,400K
= 4.23%
Kaiser Aluminum Corp's operating return on assets (operating ROA) has shown a declining trend over the past five years. In 2019, the operating ROA was at its peak at 9.89%, indicating the company was efficiently generating operating income from its assets. However, in the subsequent years, there was a notable decrease in operating ROA to 4.72% in 2020, further dropping to 2.63% in 2021 and 1.17% in 2022.
The increase in operating ROA to 4.45% in 2023 suggests a slight improvement in the company's ability to generate operating income from its assets compared to the previous year. It is worth noting that the current level of operating ROA is still significantly below the levels observed in 2019.
The decreasing trend in operating ROA may raise concerns about the company's operational efficiency and asset utilization. Further analysis is recommended to identify the factors contributing to this trend and to implement strategies to improve operating ROA in the future.
Peer comparison
Dec 31, 2023