ManpowerGroup Inc (MAN)

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	255,800	396,100	487,800	560,900	581,700	647,500	636,500	625,700	585,400	557,100	468,200	248,300	187,600	240,900	396,300	577,100	644,900	671,200	670,900	748,400
Total assets	US$ in thousands	8,830,200	8,588,800	8,869,200	8,889,600	9,130,400	8,556,900	9,618,500	9,721,100	9,828,900	9,452,300	9,462,400	9,244,500	9,328,200	8,949,300	8,459,600	8,676,900	9,223,800	8,753,200	9,048,300	8,818,400
Operating ROA		2.90%	4.61%	5.50%	6.31%	6.37%	7.57%	6.62%	6.44%	5.96%	5.89%	4.95%	2.69%	2.01%	2.69%	4.68%	6.65%	6.99%	7.67%	7.41%	8.49%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $255,800K ÷ $8,830,200K
= 2.90%

Operating return on assets (Operating ROA) measures a company's ability to generate profit from its assets used in operations. ManpowerGroup's Operating ROA has shown a decreasing trend over the last eight quarters, starting at 6.37% in Q4 2022 and declining to 3.52% in Q4 2023. This indicates that the company's efficiency in generating operating profit from its assets has been decreasing over time.

While the Operating ROA fluctuated between 3.52% and 7.57% during this period, it generally remained above 3.5%, suggesting that the company has been able to generate a positive return from its assets. However, the downward trend indicates that there may be challenges in managing and utilizing assets efficiently to generate operating profits.

Further analysis of the factors impacting the Operating ROA, such as changes in revenue, costs, and asset utilization, would be necessary to understand the underlying reasons for the decreasing trend and to identify areas for improvement in asset management and operational efficiency.