Newell Brands Inc (NWL)
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 | 67,000 | -85,000 | 882,000 | 946,000 | 812,000 |
| Total assets | US$ in thousands | 11,004,000 | 12,163,000 | 13,262,000 | 14,179,000 | 14,700,000 |
| Operating ROA | 0.61% | -0.70% | 6.65% | 6.67% | 5.52% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $67,000K ÷ $11,004,000K
= 0.61%
Newell Brands Inc's operating return on assets (ROA) has shown varying trends over the past five years. As of December 31, 2020, the operating ROA stood at 5.52%, indicating that for every dollar of assets, the company generated a return of 5.52% from its operations.
By December 31, 2021, there was an improvement in the operating ROA to 6.67%, suggesting efficient utilization of assets to generate higher operating income. This positive trend continued into December 31, 2022, with a slight decrease to 6.65% but still maintaining a healthy return on assets.
However, there was a significant decline in operating ROA by December 31, 2023, where it turned negative at -0.70%. This indicates that the company's operating income was insufficient to cover the asset base, raising concerns about operational efficiency and profitability during that period.
In December 31, 2024, there was a slight improvement in the operating ROA, reaching 0.61%. Despite the increase, the return remains relatively low compared to previous years, indicating a need for the company to focus on enhancing asset utilization and operational performance to increase profitability in the future.
Overall, fluctuations in Newell Brands Inc's operating ROA highlight the importance of closely monitoring asset efficiency and profitability to ensure sustainable financial performance.
Peer comparison
Dec 31, 2024