Knowles Cor (KN)
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 | 51,100 | -414,800 | 115,800 | 29,200 | 81,200 |
| Total assets | US$ in thousands | 1,462,800 | 1,183,900 | 1,731,600 | 1,654,900 | 1,654,600 |
| Operating ROA | 3.49% | -35.04% | 6.69% | 1.76% | 4.91% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $51,100K ÷ $1,462,800K
= 3.49%
Operating return on assets (Operating ROA) measures a company's ability to generate profits from its operational activities relative to its total assets.
Knowles Corp's operating ROA has fluctuated over the past five years. In 2023, the operating ROA stood at 2.96%, a notable decrease from the previous year's 8.27%. This decline suggests that Knowles Corp may have faced challenges in efficiently utilizing its assets to generate profits in 2023.
Comparing 2023 to 2021, where the operating ROA was 6.95%, there is a downward trend indicating a decrease in profitability generated from operational activities in the most recent year. However, it is worth noting that the operating ROA in 2023 is still higher than the figures reported in 2020 and 2019, which were 2.97% and 5.27%, respectively.
This downward trend in operating ROA from 2022 to 2023 may raise concerns about Knowles Corp's operational efficiency and asset utilization. Further analysis of the company's financial performance and operational efficiency may be necessary to determine the underlying factors driving this decline and to assess the company's prospects for improvement in the future.
Peer comparison
Dec 31, 2023