Newmont Goldcorp Corp (NEM)
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 | 5,748,000 | 708,000 | 1,461,000 | 1,741,000 | 2,823,000 |
| Total assets | US$ in thousands | 56,349,000 | 55,506,000 | 38,482,000 | 40,564,000 | 41,369,000 |
| Operating ROA | 10.20% | 1.28% | 3.80% | 4.29% | 6.82% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $5,748,000K ÷ $56,349,000K
= 10.20%
The operating return on assets (ROA) for Newmont Goldcorp Corp has fluctuated over the past five years. The trend shows a gradual decline from 6.82% as of December 31, 2020, to 4.29% as of December 31, 2021, and further down to 3.80% by December 31, 2022. Subsequently, the operating ROA experienced a significant drop to 1.28% by December 31, 2023. However, there was a notable rebound in performance with the operating ROA surging to 10.20% as of December 31, 2024.
The overall analysis suggests that the company's efficiency in generating operating profits from its assets deteriorated initially but then saw a remarkable improvement, indicating potential strategic adjustments or operational enhancements implemented by the company. The fluctuating trend in operating ROA may warrant further investigation into its underlying causes to understand the factors influencing the company's profitability and asset utilization over the years.