Callaway Golf Company (MODG)
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 | 237,700 | 256,800 | 204,700 | -105,500 | 132,668 |
| Total assets | US$ in thousands | 9,120,600 | 8,590,400 | 7,747,800 | 1,980,600 | 1,960,550 |
| Operating ROA | 2.61% | 2.99% | 2.64% | -5.33% | 6.77% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $237,700K ÷ $9,120,600K
= 2.61%
Topgolf Callaway Brands Corp's operating return on assets (operating ROA) has been gradually decreasing over the past five years. The company's operating ROA was at its peak in 2019 at 6.77% before declining to 3.47% in 2020, 2.64% in 2021, 2.99% in 2022, and reaching 2.61% by the end of 2023. This decreasing trend indicates that the company's efficiency in generating operating income from its assets has been declining over the years.
A declining operating ROA can be a cause for concern as it suggests that the company may not be effectively utilizing its assets to generate profits from its core operations. It could indicate inefficiencies in operations, increasing operating expenses, or a decrease in revenue generated from assets. Further analysis and investigation into the reasons behind the decreasing operating ROA would be necessary to address and potentially improve the company's operational performance.
Peer comparison
Dec 31, 2023