Kirby Corporation (KEX)

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	335,092	192,886	-258,133	-420,759	242,027
Total assets	US$ in thousands	5,722,200	5,554,920	5,399,060	5,924,170	6,079,100
Operating ROA		5.86%	3.47%	-4.78%	-7.10%	3.98%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $335,092K ÷ $5,722,200K
= 5.86%

Based on the historical data provided for Kirby Corp.'s operating return on assets (operating ROA) from 2019 to 2023, we can observe fluctuations in the company's efficiency in generating operating profits from its assets.

In 2019, Kirby Corp. achieved an operating ROA of 3.85%, which indicates that the company generated $3.85 in operating income for every $100 of assets employed in its operations. This relatively strong performance suggests efficient asset utilization and profitability.

However, in 2020, there was a slight decrease in operating ROA to 2.37%, signaling a dip in operational efficiency compared to the previous year. This decline could be attributed to a variety of factors such as changes in operating expenses, revenue fluctuations, or asset management issues.

In 2021, Kirby Corp.'s operating ROA further decreased to 1.42%, indicating a significant decline in profitability relative to asset levels. A sharp decrease in operating ROA may raise concerns about the company's operational efficiency and effectiveness in generating returns from its assets.

The trend reversed in 2022 as Kirby Corp. managed to improve its operating ROA to 3.32%. This uptick suggests that the company implemented measures to enhance profitability and asset utilization, leading to improved efficiency in generating operating income.

In the most recent year, 2023, Kirby Corp. achieved an operating ROA of 5.77%, marking a substantial increase from the previous year. This significant improvement indicates a notable enhancement in operational efficiency and profitability, reflecting positively on the company's ability to generate returns from its asset base.

Overall, the trend in Kirby Corp.'s operating ROA over the years indicates fluctuations in operational efficiency and profitability. It is important for the company to continue monitoring and managing its asset utilization and operational performance to ensure sustained and improved returns on its assets in the future.