LCI Industries (LCII)

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	123,428	553,028	398,410	222,934	200,210
Total assets	US$ in thousands	2,959,320	3,246,910	3,288,090	2,298,030	1,862,600
Operating ROA		4.17%	17.03%	12.12%	9.70%	10.75%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $123,428K ÷ $2,959,320K
= 4.17%

The operating return on assets (operating ROA) of LCI Industries has displayed fluctuations over the past five years. In 2023, the operating ROA decreased significantly to 4.17% from 17.03% in 2022. This sharp decline may indicate potential challenges faced by the company in efficiently utilizing its assets to generate operating income.

In the previous years, the company's operating ROA showed a positive trend, with notable performances in 2021 and 2019 at 12.12% and 10.75%, respectively. These figures suggest that LCI Industries was able to effectively convert its assets into operating profits during those periods.

The relatively lower operating ROA in 2020 compared to 2021 and 2019 could be attributed to potential economic disruptions or internal factors affecting the company's profitability during that year.

Overall, a declining trend in operating ROA, such as the substantial drop observed in 2023, may require further investigation into the company's operational efficiency and asset management strategies to identify potential areas for improvement.