Mercer International Inc (MERC)
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 | -188,774 | -85,116 | 27,033 | 249,896 | 392,368 | 475,068 | 480,100 | 417,905 | 346,583 | 232,236 | 132,217 | 90,696 | 63,729 | -17,993 | -12,982 | 14,513 | 84,003 | 241,106 | 285,705 | 285,371 |
| Total assets | US$ in thousands | 2,662,580 | 2,655,000 | 2,633,370 | 2,740,480 | 2,725,040 | 2,543,980 | 2,415,720 | 2,456,940 | 2,351,230 | 2,231,750 | 2,214,700 | 2,178,270 | 2,129,130 | 2,044,740 | 1,973,610 | 1,951,990 | 2,065,720 | 1,949,650 | 2,029,780 | 2,013,400 |
| Operating ROA | -7.09% | -3.21% | 1.03% | 9.12% | 14.40% | 18.67% | 19.87% | 17.01% | 14.74% | 10.41% | 5.97% | 4.16% | 2.99% | -0.88% | -0.66% | 0.74% | 4.07% | 12.37% | 14.08% | 14.17% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-188,774K ÷ $2,662,580K
= -7.09%
Mercer International Inc.'s operating return on assets (operating ROA) has shown a declining trend over the past quarters, ranging from a peak of 19.87% in Q2 2022 to a low of -5.82% in Q4 2023. The company's ability to generate profits from its operations in relation to its total assets has weakened significantly.
The declining trend in operating ROA suggests challenges in the company's operational efficiency and profitability. Factors such as increasing operating expenses, declining sales, or inefficient asset utilization could be contributing to this downward trajectory.
It is important for Mercer International Inc. to closely monitor its operational performance and take steps to improve efficiency and profitability in order to enhance its operating ROA and overall financial health.