MSA Safety (MSA)
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 | 231,320 | 239,137 | 22,780 | 171,895 | 188,247 |
| Total assets | US$ in thousands | 2,170,150 | 2,376,980 | 2,396,400 | 1,919,630 | 1,781,800 |
| Operating ROA | 10.66% | 10.06% | 0.95% | 8.95% | 10.56% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $231,320K ÷ $2,170,150K
= 10.66%
The operating return on assets (operating ROA) of MSA Safety Inc has exhibited fluctuations over the past five years. In 2023, the operating ROA was 17.86%, showing a notable increase compared to the previous year's 11.69%. This indicates that the company generated $0.1786 in operating income for every dollar of assets in 2023, reflecting improved operational efficiency.
The significant improvement in operating ROA from 2022 to 2023 suggests that MSA Safety Inc effectively utilized its assets to generate higher operating income. This could be attributed to various factors such as cost management, revenue growth, or operational improvements.
Comparing the 2023 operating ROA to the lower figure of 1.65% in 2021, there was a substantial recovery in the company's asset utilization efficiency. The sharp increase in operating ROA from 2021 to 2023 indicates that MSA Safety Inc made significant operational improvements and effectively optimized its asset base during this period.
While the operating ROA in 2020 and 2019 was higher than in 2021, the 2023 figure surpasses both years, showing an upward trend in asset utilization efficiency. This suggests that MSA Safety Inc has been more successful in generating operating income from its assets in 2023 compared to the earlier years.
Overall, the improvement in MSA Safety Inc's operating ROA in 2023 reflects enhanced operational performance and better utilization of assets to drive profitability. It indicates increased efficiency in managing resources to generate operating income, which could be viewed positively by investors and stakeholders.
Peer comparison
Dec 31, 2023