Materion Corporation (MTRN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 47,223 | 136,444 | 119,755 | 77,111 | 8,215 |
| Total assets | US$ in thousands | 1,697,630 | 1,762,730 | 1,691,980 | 1,607,480 | 1,057,860 |
| Operating ROA | 2.78% | 7.74% | 7.08% | 4.80% | 0.78% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $47,223K ÷ $1,697,630K
= 2.78%
Materion Corporation's operating return on assets (ROA) has displayed fluctuations over the years, based on the provided data. The operating ROA increased significantly from 2020 to 2022, rising from 0.78% to 7.08%. This substantial improvement indicates that the company became more efficient in generating operating income relative to its total assets during this period.
However, in 2023, Materion Corporation's operating ROA continued to increase, reaching 7.74%, showcasing ongoing efficiency in utilizing its assets to generate operating profits. This suggests effective management of resources and operational performance.
In 2024, there was a noticeable decline in the operating ROA to 2.78%, indicating a reduction in the company's ability to generate operating income from its assets compared to the previous year. It is essential for Materion Corporation to assess the factors contributing to this decrease and take appropriate measures to enhance its operational efficiency and profitability in the future.
Overall, Materion Corporation's operating ROA trend reflects varying levels of asset utilization efficiency over the years, highlighting the importance of continuous monitoring and improvement in operational performance to maximize returns on assets.