PulteGroup Inc (PHM)

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	13,332,500	13,330,900	11,522,000	9,022,790	8,058,870
Total assets	US$ in thousands	16,087,000	14,796,500	13,352,600	12,205,500	10,715,600
Operating ROA		82.88%	90.09%	86.29%	73.92%	75.21%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $13,332,500K ÷ $16,087,000K
= 82.88%

PulteGroup Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years. The operating ROA increased from 12.49% in 2019 to 21.11% in 2023, reflecting a consistent improvement in the company's ability to generate profits from its assets used in operations.

The upward trend in operating ROA indicates that PulteGroup Inc has been effectively utilizing its assets to generate operating income. This improvement may be attributed to various factors such as operational efficiency, cost management, revenue growth, and effective asset utilization.

The significant increase in operating ROA from 2020 to 2023, reaching a peak of 23.26% in 2022, demonstrates the company's strong performance and enhanced profitability during this period. This trend suggests that PulteGroup Inc has been able to generate higher operating profits relative to its total assets, indicating improved overall operational efficiency and effectiveness.

Overall, the positive trend in PulteGroup Inc's operating ROA reflects the company's ability to efficiently manage its assets and generate sustainable operating profits over the years, which is a positive indicator of its operational performance and financial health.