Nextera Energy Inc (NEE)
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 | 10,237,000 | 4,081,000 | 2,913,000 | 5,116,000 | 5,353,000 |
| Total assets | US$ in thousands | 177,489,000 | 158,935,000 | 140,912,000 | 127,684,000 | 117,691,000 |
| Operating ROA | 5.77% | 2.57% | 2.07% | 4.01% | 4.55% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $10,237,000K ÷ $177,489,000K
= 5.77%
NextEra Energy Inc's operating return on assets (operating ROA) has exhibited varied performance over the past five years. The operating ROA increased from 2.67% in 2020 to 5.17% in 2023, indicating an improvement in the company's efficiency in generating operating profit from its assets. This significant increase in operating ROA suggests that NextEra Energy Inc has been able to enhance its operational performance and effectively utilize its assets to generate higher levels of operating income.
However, it is worth noting that there was a decline in operating ROA from 4.29% in 2019 to 2.37% in 2022, followed by a slight increase to 2.49% in 2021. These fluctuations may indicate fluctuations in the company's operational efficiency and profitability over this period.
Overall, the trend of NextEra Energy Inc's operating ROA shows some volatility year-over-year, but the recent increase in operating ROA in 2023 is a positive sign of improved operational performance and efficiency in asset utilization. This metric is essential for investors and analysts to assess how effectively the company is generating operating income relative to its asset base.
Peer comparison
Dec 31, 2023