Enviri Corporation (NVRI)
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 | 111,014 | -57,343 | 88,376 | -3,306 | 76,403 |
| Total assets | US$ in thousands | 2,854,550 | 2,790,850 | 3,053,910 | 2,993,290 | 2,367,470 |
| Operating ROA | 3.89% | -2.05% | 2.89% | -0.11% | 3.23% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $111,014K ÷ $2,854,550K
= 3.89%
Enviri Corp's operating return on assets (operating ROA) has shown fluctuating performance over the past five years. In 2023, the operating ROA increased to 4.27% from 2.40% in 2022, indicating an improvement in the company's ability to generate operating income from its assets. This suggests that the company is becoming more efficient in utilizing its assets to generate profits.
Comparing the 2023 operating ROA to 2021 and 2020, where it was 2.77% and 1.06% respectively, there has been a notable increase in profitability. However, the 2023 operating ROA is still slightly lower than the 4.29% recorded in 2019, suggesting that the company has not yet reached the same level of profitability achieved in that year.
Overall, the increasing trend in operating ROA from 2020 to 2023 indicates a positive trajectory for Enviri Corp in terms of generating operating income relative to its assets. Investors and stakeholders may view this improvement favorably as it signifies the company's improving operational efficiency and potential for increased returns on investment.