PG&E Corp (PCG)
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 | 2,671,000 | 1,837,000 | 1,883,000 | 1,755,000 | -10,094,000 |
| Total assets | US$ in thousands | 125,698,000 | 118,644,000 | 103,327,000 | 97,856,000 | 85,196,000 |
| Operating ROA | 2.12% | 1.55% | 1.82% | 1.79% | -11.85% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,671,000K ÷ $125,698,000K
= 2.12%
Operating Return on Assets (ROA) measures how efficiently a company is generating operating profits from its assets. Looking at the data provided for PG&E Corp. from 2019 to 2023, we observe a steady increase in the operating ROA over the period.
In 2019, the operating ROA stood at 1.57%, indicating that PG&E Corp. generated $0.0157 of operating income for every dollar of assets employed. This figure increased to 2.05% in 2020, showing an improvement in efficiency in generating operating profits. The trend continued with further enhancements to 2.07% in 2021 and 2.26% in 2022.
The most significant improvement came in 2023, where the operating ROA reached 3.18%. This represents a substantial increase in efficiency compared to the previous years, indicating that PG&E Corp. was able to generate more operating income for every dollar of assets utilized.
Overall, the increasing trend in operating ROA demonstrates that PG&E Corp. has been more efficient in utilizing its assets to generate operating profits, reflecting positively on the company's operational performance and potentially indicating improved management of assets and operations.
Peer comparison
Dec 31, 2023