Enpro Industries (NPO)
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 | 76,800 | 72,200 | 65,400 | 29,100 | 56,600 |
| Total assets | US$ in thousands | 2,499,500 | 2,647,800 | 2,974,600 | 2,083,600 | 2,035,100 |
| Operating ROA | 3.07% | 2.73% | 2.20% | 1.40% | 2.78% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $76,800K ÷ $2,499,500K
= 3.07%
The operating return on assets (operating ROA) of Enpro Inc has shown a positive trend over the past five years. In 2019, the operating ROA was 2.78%, which increased to 3.18% in 2021, indicating an improvement in the company's ability to generate operating income relative to its assets.
Further improvement was seen in 2022 and 2023, with the operating ROA reaching 5.19% and 5.51% respectively. This suggests that Enpro Inc has become more efficient in utilizing its assets to generate operating profits over the years.
Overall, the increasing trend in operating ROA indicates that Enpro Inc is managing its operations effectively and generating higher returns on its asset base. This positive trend is a favorable indicator of the company's operational efficiency and profitability.