LCI Industries (LCII)
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 | 218,237 | 123,428 | 553,028 | 398,410 | 222,934 |
| Total assets | US$ in thousands | 2,894,740 | 2,959,320 | 3,246,910 | 3,288,090 | 2,298,030 |
| Operating ROA | 7.54% | 4.17% | 17.03% | 12.12% | 9.70% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $218,237K ÷ $2,894,740K
= 7.54%
Operating Return on Assets (Operating ROA) is a key financial metric that indicates how efficiently a company is generating profits from its assets employed in operations. Analyzing the trend of LCI Industries' Operating ROA from 2020 to 2024 provides insights into the company's operational efficiency and profitability.
- In 2020, LCI Industries had an Operating ROA of 9.70%, indicating that for every dollar of assets employed in operations, the company generated a return of 9.70 cents.
- By the end of 2021, the Operating ROA improved to 12.12%, suggesting an enhanced ability to generate profits from its operational assets.
- The Operating ROA experienced a significant increase in 2022, reaching 17.03%, which indicates a substantial improvement in operational efficiency and profitability.
- However, in 2023, the Operating ROA dropped to 4.17%, signifying a decline in the company's ability to generate profits from its operational assets compared to the previous year.
- In 2024, the Operating ROA slightly recovered to 7.54%, but it remained below the levels seen in 2022 and 2021.
Overall, the fluctuation in LCI Industries' Operating ROA over the years indicates varying levels of operational efficiency and profitability. It is essential for the company to assess the factors contributing to these fluctuations and take necessary measures to improve its operational performance for consistent and sustainable profitability.
Peer comparison
Dec 31, 2024