Leidos Holdings Inc (LDOS)
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 | 621,000 | 1,088,000 | 1,152,000 | 998,000 | 912,000 |
| Total assets | US$ in thousands | 12,695,000 | 13,071,000 | 13,261,000 | 12,511,000 | 9,367,000 |
| Operating ROA | 4.89% | 8.32% | 8.69% | 7.98% | 9.74% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $621,000K ÷ $12,695,000K
= 4.89%
The operating return on assets (operating ROA) for Leidos Holdings Inc has shown a fluctuating trend over the past five years. The ratio stood at 9.74% as of December 31, 2019, indicating a relatively high level of operational efficiency in generating profits from its assets. However, there was a decline in the operating ROA to 7.98% by the end of 2020, suggesting a decrease in the company's ability to efficiently utilize its assets to generate operating income.
Subsequently, there was a slight improvement in 2021, with the operating ROA increasing to 8.69%, but the ratio experienced a significant drop to 8.32% in 2022. The operating ROA further decreased to 4.89% by the end of 2023, indicating a notable decline in the company's profitability relative to its asset base.
Overall, the decreasing trend in Leidos Holdings Inc's operating ROA over the past five years may raise concerns about the company's operational efficiency and its ability to generate profits from its assets effectively. Further analysis of the company's operational performance and asset management strategies may be necessary to address the declining trend in operating ROA.
Peer comparison
Dec 31, 2023