LCI Industries (LCII)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	123,428	97,770	139,755	303,370	553,028	690,038	691,487	566,680	398,410	347,890	353,299	280,099	222,934	197,126	151,846	196,721	200,210	192,092	188,292	186,723
Total assets	US$ in thousands	2,959,320	3,033,810	3,076,400	3,209,370	3,246,910	3,268,970	3,482,700	3,640,720	3,288,090	3,088,180	2,776,180	2,500,470	2,298,030	2,110,680	2,018,270	2,051,210	1,862,600	1,414,810	1,330,220	1,342,550
Operating ROA		4.17%	3.22%	4.54%	9.45%	17.03%	21.11%	19.85%	15.57%	12.12%	11.27%	12.73%	11.20%	9.70%	9.34%	7.52%	9.59%	10.75%	13.58%	14.15%	13.91%

December 31, 2023 calculation

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

Operating return on assets (Operating ROA) is a key profitability ratio that measures a company's ability to generate profits from its operating activities relative to its total assets. In the case of LCI Industries, the Operating ROA has shown some fluctuations over the past eight quarters, as per the data provided.

In Q4 2023, LCI Industries reported an Operating ROA of 4.17%, which represents a slight increase from the previous quarter's 3.22%. However, this figure is considerably lower than the Operating ROA reported in Q3 2022 and Q4 2022, which were 21.11% and 17.03% respectively.

The Operating ROA in Q2 2023 and Q1 2023 stood at 4.54% and 9.45% respectively, indicating fluctuating profitability levels during the first half of 2023. The highest Operating ROA in the dataset was observed in Q3 2022 at 21.11%, followed closely by Q2 2022 at 19.85%.

The Operating ROA trend for LCI Industries indicates some variability in the company's ability to generate profits from its operational activities relative to its asset base. This may suggest fluctuations in operational efficiency or asset utilization efficiency over the quarters under consideration. As an analyst, it would be important to delve deeper into the company's financial performance and operational strategies to understand the factors driving the fluctuations in Operating ROA.