Kirby Corporation (KEX)
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 | 399,097 | 335,092 | -159 | -126,898 | -71,377 |
| Total assets | US$ in thousands | 5,851,950 | 5,722,200 | 5,554,920 | 5,399,060 | 5,924,170 |
| Operating ROA | 6.82% | 5.86% | -0.00% | -2.35% | -1.20% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $399,097K ÷ $5,851,950K
= 6.82%
Based on the data provided, Kirby Corporation's operating return on assets (Operating ROA) has shown significant fluctuations over the past five years. The operating ROA was negative in 2020 at -1.20% and further declined in 2021 to -2.35%, indicating challenges in generating operating profits relative to the assets employed.
However, the company managed to improve its operating ROA in the following years. In 2022, the operating ROA improved to breakeven at 0.00%, suggesting a stabilization in operational performance. Subsequently, there was a notable increase in operating efficiency, with the operating ROA reaching 5.86% by the end of 2023 and further improving to 6.82% by the end of 2024.
This improvement in operating ROA highlights Kirby Corporation's enhanced ability to generate operating profits from its asset base in the later years, potentially indicating improved operational efficiency, cost management, or revenue growth strategies implemented by the company. However, continued monitoring of the trend is essential to ensure sustained profitability and asset utilization in the future.
Peer comparison
Dec 31, 2024