Metallus Inc (MTUS)

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	102,100	46,600	119,200	-70,800	-97,400
Total assets	US$ in thousands	1,175,300	1,082,000	1,158,900	994,000	1,085,200
Operating ROA		8.69%	4.31%	10.29%	-7.12%	-8.98%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $102,100K ÷ $1,175,300K
= 8.69%

Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profit from its total assets. A higher operating ROA indicates better operational efficiency and profitability.

In the case of Metallus Inc, the Operating ROA has varied significantly over the past five years. In 2023, the company achieved an Operating ROA of 8.69%, reflecting an improvement from the previous year. This suggests that in 2023, the company was able to generate $0.0869 in operating profit for every $1 of assets.

Compared to 2022, where the Operating ROA was 4.31%, the company's profitability and operational efficiency have notably increased in 2023. The significant improvement in Operating ROA from 2022 to 2023 indicates that Metallus Inc has been more effective in utilizing its assets to generate operating profit.

Looking further back, in 2021, the company recorded an Operating ROA of 10.29%, indicating strong performance in that year. However, in 2020 and 2019, Metallus Inc experienced negative Operating ROA figures of -7.12% and -8.98% respectively, signifying that the company was not efficiently utilizing its assets to generate operating income in those years.

Overall, the trend in Metallus Inc's Operating ROA shows fluctuations over the years, with significant improvements in 2023 compared to the previous years. This suggests that the company has made progress in enhancing operational efficiency and profitability, ultimately leading to a better return on its assets.