MDU Resources Group Inc (MDU)
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 | 265,642 | 425,978 | 574,000 | 534,200 | 544,900 |
| Total assets | US$ in thousands | 7,038,820 | 7,833,160 | 9,660,780 | 8,910,440 | 8,053,370 |
| Operating ROA | 3.77% | 5.44% | 5.94% | 6.00% | 6.77% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $265,642K ÷ $7,038,820K
= 3.77%
The operating return on assets (ROA) for MDU Resources Group Inc has shown a slight decline over the past five years. As of December 31, 2020, the operating ROA was 6.77%, which decreased to 6.00% by the end of 2021. Subsequently, there was a further decrease to 5.94% in 2022, followed by a decline to 5.44% in 2023. The trend continued in 2024, with the operating ROA dropping to 3.77%.
This indicates that the company's ability to generate operating income from its assets has been weakening over the period under review. A declining operating ROA may suggest inefficiencies in asset utilization or decreasing profitability from the company's core operations. MDU Resources Group Inc may need to assess its operational efficiency and profitability drivers to improve its overall financial performance and strengthen its return on assets in the future.
Peer comparison
Dec 31, 2024