Minerals Technologies Inc (MTX)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 171,800 | 148,600 | 192,100 | 211,600 | 214,800 | 223,800 | 248,800 | 243,100 | 235,700 | 237,600 | 225,500 | 189,000 | 187,900 | 181,100 | 186,100 | 204,400 | 208,700 | 223,300 | 238,000 | 255,300 |
| Total assets | US$ in thousands | 3,346,600 | 3,344,700 | 3,408,200 | 3,450,700 | 3,401,600 | 3,387,300 | 3,403,100 | 3,425,800 | 3,374,200 | 3,384,300 | 3,253,300 | 3,213,200 | 3,209,400 | 3,214,100 | 3,056,900 | 3,069,100 | 3,112,600 | 3,125,900 | 3,149,400 | 3,163,400 |
| Operating ROA | 5.13% | 4.44% | 5.64% | 6.13% | 6.31% | 6.61% | 7.31% | 7.10% | 6.99% | 7.02% | 6.93% | 5.88% | 5.85% | 5.63% | 6.09% | 6.66% | 6.71% | 7.14% | 7.56% | 8.07% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $171,800K ÷ $3,346,600K
= 5.13%
To analyze Minerals Technologies, Inc.'s operating return on assets (operating ROA) based on the provided quarterly data, we can observe a fluctuating trend in the ratio over the past eight quarters. The operating ROA ranged from a low of 7.18% in Q1 2023 to a high of 8.36% in Q4 2023, indicating some variability in the company's ability to generate operating income relative to its total assets.
On average, the operating ROA for Minerals Technologies, Inc. over the eight quarters stands at approximately 7.56%. This suggests that, on average, the company generates $0.0756 in operating income for every dollar of assets it holds. The relatively stable average operating ROA indicates a reasonable level of operational efficiency and asset utilization by the company over the period under review.
It is important to note that a higher operating ROA is typically preferred as it signifies better operational performance and efficiency in generating profits from assets. However, occasional fluctuations in the ratio are common and may be influenced by various factors such as changes in revenue, costs, asset base, and operational efficiency.
In conclusion, while the operating ROA for Minerals Technologies, Inc. has displayed some variability in the past eight quarters, the average ratio of approximately 7.56% indicates a decent level of operational efficiency in generating income from the company's assets. Continued monitoring of this ratio will be essential to assess the company's ongoing operational performance and effectiveness in utilizing its assets to drive profitability.
Peer comparison
Dec 31, 2023