Owens Corning Inc (OC)
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 | 1,812,000 | 1,714,000 | 1,438,000 | -138,000 | 787,000 |
| Total assets | US$ in thousands | 11,237,000 | 10,752,000 | 10,015,000 | 9,481,000 | 10,006,000 |
| Operating ROA | 16.13% | 15.94% | 14.36% | -1.46% | 7.87% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,812,000K ÷ $11,237,000K
= 16.13%
Owens Corning's operating return on assets (operating ROA) has shown a positive trend over the past five years, indicating an improvement in the company's ability to generate operating income relative to its assets.
The operating ROA increased from 8.24% in 2019 to 15.39% in 2023, reflecting a steady growth in profitability and operational efficiency. This suggests that Owens Corning has been effectively utilizing its assets to generate operating income, which is a positive indicator of operational performance.
The operating ROA peaked at 15.88% in 2022, showcasing the company's strong operational performance that year. Despite a slight dip to 13.67% in 2021, the metric remained above the 10% threshold, indicating consistent profitability relative to its asset base.
Overall, the upward trend in Owens Corning's operating ROA signals effective management of assets to drive operating income, which bodes well for the company's financial health and performance in the market.