NiSource Inc (NI)
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 | 1,455,500 | 1,295,500 | 1,265,800 | 1,006,900 | 550,800 |
| Total assets | US$ in thousands | 31,788,100 | 31,077,200 | 26,736,600 | 24,156,900 | 22,040,500 |
| Operating ROA | 4.58% | 4.17% | 4.73% | 4.17% | 2.50% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,455,500K ÷ $31,788,100K
= 4.58%
Based on the provided data for NiSource Inc's operating return on assets (Operating ROA) over the years, we can observe a trend of improvement from 2.50% as of December 31, 2020, to 4.58% as of December 31, 2024. This indicates the company's ability to generate operating profits from its assets has been progressively increasing over the years.
The increase in operating ROA signifies that NiSource Inc has been effectively utilizing its assets to generate operating income, which is a positive indicator of operational efficiency and profitability. This improvement can be attributed to various factors such as cost management, revenue growth, operational improvements, and efficient asset utilization.
It is important to note that a higher operating ROA indicates that the company is generating more operating income relative to its total assets, which is a key metric for assessing management's ability to generate profits from its core operations. This trend of increasing operating ROA reflects positively on NiSource Inc's operational performance and efficiency in managing its assets to drive profitability.
Peer comparison
Dec 31, 2024