MSA Safety (MSA)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	395,700	399,282	401,928	396,052	389,229	338,623	308,813	275,341	239,137	79,677	44,325	17,839	19,209	126,687	138,875	152,119	166,863	188,203	206,668	212,852
Total assets	US$ in thousands	2,205,780	2,241,930	2,243,570	2,174,330	2,170,150	2,194,340	2,199,150	2,179,670	2,376,980	2,387,290	2,408,450	2,415,780	2,396,400	2,259,450	1,963,230	1,942,760	1,872,480	1,792,660	1,752,940	1,730,930
Operating ROA		17.94%	17.81%	17.91%	18.21%	17.94%	15.43%	14.04%	12.63%	10.06%	3.34%	1.84%	0.74%	0.80%	5.61%	7.07%	7.83%	8.91%	10.50%	11.79%	12.30%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $395,700K ÷ $2,205,780K
= 17.94%

Operating Return on Assets (ROA) is a financial ratio that measures a company's ability to generate operating income from its assets. It is calculated by dividing operating income by average total assets.

Based on the provided data for MSA Safety, the trend of the Operating ROA over the specified quarters fluctuates over time. It started at a level of 12.30% as of March 31, 2020, and exhibited a general decreasing trend until December 31, 2021, where it dropped to a low of 0.80%. This decline indicates potential operational challenges or inefficiencies in utilizing assets to generate operating income during that period.

However, from the first quarter of 2022 onwards, the Operating ROA showed a notable improvement, gradually increasing to reach 17.94% by December 31, 2024. This upward trend highlights the company's effectiveness in generating operating income in relation to its assets, indicating improved operational efficiency and potentially better asset utilization.

Overall, the fluctuating trend of MSA Safety's Operating ROA suggests periods of both operational challenges and improvements in asset management and operational efficiency. It would be important to further analyze the reasons behind these fluctuations to understand the underlying factors impacting the company's performance.