Pentair PLC (PNR)
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 | 739,200 | 595,300 | 636,900 | 461,400 | 432,500 |
| Total assets | US$ in thousands | 6,563,300 | 6,447,500 | 4,753,600 | 4,197,200 | 4,139,500 |
| Operating ROA | 11.26% | 9.23% | 13.40% | 10.99% | 10.45% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $739,200K ÷ $6,563,300K
= 11.26%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. Pentair plc's Operating ROA has fluctuated over the past five years. In 2023, Pentair plc's Operating ROA was 11.26%, showing an increase from the previous year's 9.23%. This indicates that the company improved its efficiency in generating operating income from its assets in 2023.
Comparing to previous years, Pentair plc achieved a higher Operating ROA in 2021, with a ratio of 13.40%, signaling strong performance in generating operating income relative to its asset base. In 2020 and 2019, Pentair plc's Operating ROA stood at 10.99% and 10.45%, respectively, demonstrating consistency in the company's ability to generate operating income from its assets.
Overall, Pentair plc's Operating ROA has shown some variability in the past five years, with fluctuations in performance. The company's ability to generate operating income from its assets has improved in 2023 compared to the previous year, although it was lower than the peak performance seen in 2021. This ratio provides valuable insights into Pentair plc's efficiency in utilizing its assets to generate operating income, which is essential for assessing the company's operational effectiveness.
Peer comparison
Dec 31, 2023