nVent Electric PLC (NVT)
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 | 587,400 | 440,400 | 355,400 | 38,400 | 333,100 |
| Total assets | US$ in thousands | 6,161,700 | 4,902,200 | 4,674,200 | 4,366,100 | 4,640,300 |
| Operating ROA | 9.53% | 8.98% | 7.60% | 0.88% | 7.18% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $587,400K ÷ $6,161,700K
= 9.53%
nVent Electric plc's operating return on assets (operating ROA) has shown a positive trend over the past five years, increasing from 7.18% in 2019 to 9.53% in 2023. This indicates that the company has been able to generate more operating income relative to its total assets.
The steady improvement in operating ROA suggests that nVent Electric plc has been effectively utilizing its assets to generate operating profits. This can be a positive sign of operational efficiency and effective management of the company's resources.
A higher operating ROA indicates that the company is more efficient in generating profits from its core operations. This could be a result of better cost management, higher revenue generation, or improved asset utilization.
Overall, the increasing trend in nVent Electric plc's operating ROA over the years reflects positively on the company's ability to generate returns from its operating activities and optimize the use of its assets.
Peer comparison
Dec 31, 2023