PHINIA Inc. (PHIN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 269,000 | 264,000 | 254,000 |
| Total assets | US$ in thousands | 3,768,000 | 4,024,000 | 3,978,000 |
| Operating ROA | 7.14% | 6.56% | 6.39% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $269,000K ÷ $3,768,000K
= 7.14%
Operating Return on Assets (Operating ROA) is a key financial indicator that measures a company's ability to generate operating profits from its assets. Based on the data provided for PHINIA Inc., we observe a gradual improvement in the company's Operating ROA over the course of the year 2024.
As of March 31, 2024, PHINIA Inc. had an Operating ROA of 6.39%, indicating that for every dollar of assets the company owns, it generated approximately 6.39 cents in operating profit. By September 30, 2024, the Operating ROA had slightly increased to 6.56%, showing a positive trend in the company's efficiency in utilizing its assets to generate operating income.
The most significant improvement in PHINIA Inc.'s Operating ROA was seen by the end of the year, on December 31, 2024, where it reached 7.14%. This indicates that the company was able to further enhance its operational performance and profitability relative to its asset base.
Overall, the upward trend in PHINIA Inc.'s Operating ROA throughout 2024 suggests that the company effectively managed its assets to generate operating income, potentially leading to increased shareholder value and overall financial health. It reflects positively on the company's ability to optimize resource utilization and generate profits from its core business operations.
Peer comparison
Dec 31, 2024