Leidos Holdings Inc (LDOS)
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 | 1,827,000 | 621,000 | 1,088,000 | 1,152,000 | 998,000 |
| Total assets | US$ in thousands | 13,104,000 | 12,695,000 | 13,071,000 | 13,261,000 | 12,511,000 |
| Operating ROA | 13.94% | 4.89% | 8.32% | 8.69% | 7.98% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,827,000K ÷ $13,104,000K
= 13.94%
The operating return on assets (ROA) measures a company's ability to generate profit from its operational assets. Based on the data provided for Leidos Holdings Inc, the operating ROA has shown fluctuations over the years.
From December 31, 2020, to December 31, 2021, there was an increase in operating ROA from 7.98% to 8.69%, indicating an improvement in the company's efficiency in generating operating profits from its assets. However, by December 31, 2022, the operating ROA decreased slightly to 8.32%.
The operating ROA experienced a significant decline by December 31, 2023, dropping to 4.89%. This decline may suggest a decrease in the company's operational efficiency or profitability relative to its assets during that period.
Subsequently, by December 31, 2024, there was a notable recovery in the operating ROA, surging to 13.94%. This sharp increase could indicate improved operational performance and profitability, reflecting a more effective utilization of the company's assets to generate operating income.
In conclusion, the fluctuations in Leidos Holdings Inc's operating ROA over the years demonstrate varying levels of operational efficiency and profitability relative to its assets. It is essential for investors and stakeholders to monitor these trends to assess the company's performance and sustainability in generating returns from its operational activities.
Peer comparison
Dec 31, 2024