Mercer International Inc (MERC)
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 | -188,774 | 392,368 | 346,583 | 63,729 | 84,003 |
| Total assets | US$ in thousands | 2,662,580 | 2,725,040 | 2,351,230 | 2,129,130 | 2,065,720 |
| Operating ROA | -7.09% | 14.40% | 14.74% | 2.99% | 4.07% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-188,774K ÷ $2,662,580K
= -7.09%
Mercer International Inc.'s operating return on assets (ROA) has exhibited variability over the past five years. The ratio has ranged from a negative 5.82% in 2023 to a peak of 14.74% in 2021. This indicates fluctuations in the company's ability to generate operating profits from its assets over the period under review. The negative ROA in 2023 suggests that the company's operating income was insufficient to cover its asset base, potentially indicating operating inefficiencies or challenging operational conditions. However, the positive ROAs in the preceding years demonstrate an ability to generate operating income relative to the size of the asset base.
Overall, Mercer International Inc.'s operating ROA trend indicates a mix of profitability and operational challenges, highlighting the importance of closely monitoring the company's operating performance and efficiency in utilizing its assets to drive profitability.