Newmont Goldcorp Corp (NEM)
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 | -1,091,000 | 1,057,000 | 4,494,000 | 5,478,000 | 7,860,000 |
| Total assets | US$ in thousands | 55,506,000 | 38,482,000 | 40,564,000 | 41,369,000 | 39,974,000 |
| Operating ROA | -1.97% | 2.75% | 11.08% | 13.24% | 19.66% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-1,091,000K ÷ $55,506,000K
= -1.97%
The operating return on assets (operating ROA) for Newmont Corp has shown a decreasing trend over the five-year period from 2019 to 2023. In 2019, the operating ROA was 3.95%, which increased to 7.40% in 2020, reflecting improved operational efficiency and profitability. However, the operating ROA then decreased to 4.90% in 2021, 4.17% in 2022, and further down to 1.28% in 2023.
This declining trend in operating ROA suggests that Newmont Corp may be facing challenges in generating profits from its operational assets. It could indicate inefficiencies in asset utilization, increasing operating expenses, or a decrease in revenue generation relative to its assets.
Management should investigate the factors contributing to this decline in operating ROA and take corrective actions to improve operational efficiency, optimize asset utilization, and enhance profitability in order to drive sustainable long-term value for the company and its shareholders.