Manhattan Associates Inc (MANH)

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	209,881	152,700	134,333	114,061	115,924
Total assets	US$ in thousands	673,353	570,178	539,708	465,412	372,279
Operating ROA		31.17%	26.78%	24.89%	24.51%	31.14%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $209,881K ÷ $673,353K
= 31.17%

Operating Return on Assets (Operating ROA) is a key profitability ratio that measures a company's ability to generate profits from its operating activities in relation to its total assets. Looking at the trend of Manhattan Associates, Inc.'s Operating ROA over the past five years, there has been a fluctuating pattern.

In 2019, the company exhibited a strong Operating ROA of 31.14%, indicating that it generated approximately $0.3114 in operating income for every dollar of assets it had. This high ratio suggests efficient asset utilization and effective management of operational profitability.

Subsequently, in 2020, the Operating ROA remained relatively stable at 24.51%, demonstrating the company's ability to sustain its profitability levels despite economic uncertainties and potential challenges.

Moving to 2021 and 2022, Manhattan Associates, Inc.'s Operating ROA showed a positive growth trajectory, reaching 24.89% and 26.78% respectively. This improvement indicates that the company enhanced its operational efficiency and assets' productivity during these years.

Finally, in 2023, the company achieved the highest Operating ROA of the five-year period at 31.17%. This significant increase suggests that Manhattan Associates, Inc. experienced a notable boost in operating profitability relative to its asset base, which reflects positively on its operational performance and management effectiveness.

Overall, Manhattan Associates, Inc. has demonstrated a varying but generally positive trend in its Operating ROA over the past five years, showcasing its ability to efficiently utilize its assets to generate operating profits.