Enviri Corporation (NVRI)
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 | 31,745 | 111,014 | -57,343 | 88,376 | 21,081 |
| Total assets | US$ in thousands | 2,650,230 | 2,854,550 | 2,790,850 | 3,053,910 | 2,993,290 |
| Operating ROA | 1.20% | 3.89% | -2.05% | 2.89% | 0.70% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $31,745K ÷ $2,650,230K
= 1.20%
Operating return on assets (Operating ROA) is a key financial metric that indicates the efficiency of a company in generating profits from its assets used in operations. Analyzing the trend of Enviri Corporation's Operating ROA from December 31, 2020, to December 31, 2024, reveals fluctuations in the company's operational performance.
- As of December 31, 2020, Enviri Corporation's Operating ROA stood at 0.70%. This percentage indicates that the company generated a return of 0.70 cents for every dollar of assets employed in its operations during that period.
- By December 31, 2021, Enviri Corporation's Operating ROA witnessed a notable improvement, reaching 2.89%. This increase suggests a significant enhancement in the company's operational efficiency and profitability compared to the previous year.
- However, the trend reversed in the subsequent year, as of December 31, 2022, with the Operating ROA falling to -2.05%. A negative Operating ROA implies that the company's operations resulted in a loss, indicating potential issues in asset utilization or profitability.
- Enviri Corporation's performance rebounded by December 31, 2023, when the Operating ROA increased to 3.89%. This significant improvement indicates a strong operational performance, with the company generating $3.89 in operating income for every $100 of assets deployed.
- Lastly, as of December 31, 2024, Enviri Corporation's Operating ROA decreased to 1.20%. While lower than the previous year, this figure still indicates a positive return on assets and implies that the company continues to generate profits from its operational activities.
In conclusion, the analysis of Enviri Corporation's Operating ROA reveals fluctuations in operational efficiency and profitability over the years, emphasizing the importance of monitoring and managing asset utilization to ensure sustainable performance and profitability.