Envista Holdings Corp (NVST)
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 | 31,500 | 319,200 | 306,200 | 43,500 | 235,700 |
| Total assets | US$ in thousands | 6,605,100 | 6,587,000 | 6,574,200 | 6,876,000 | 6,158,300 |
| Operating ROA | 0.48% | 4.85% | 4.66% | 0.63% | 3.83% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $31,500K ÷ $6,605,100K
= 0.48%
Envista Holdings Corp's operating return on assets (operating ROA) has shown some variation over the past five years. In 2023, the operating ROA was 4.39%, a slight decrease from the previous year's figure of 4.85%. Despite this decline, the operating ROA remains relatively stable and healthy, indicating that the company is generating a reasonable level of operating income relative to its total assets.
Comparing the current operating ROA to earlier years, we see that it is higher than the 2020 figure of 0.48% but lower than the 2021 and 2019 figures of 4.66% and 4.51%, respectively. This suggests that while the company's performance has improved since 2020, it has not yet reached the same level of efficiency as in previous years.
Overall, Envista Holdings Corp's operating ROA appears to be in line with industry standards and indicates that the company is effectively utilizing its assets to generate operating income. Monitoring this ratio over time can provide insights into the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2023