Pilgrims Pride Corp (PPC)
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 | 522,286 | 1,176,600 | 211,164 | 245,463 | 690,568 |
| Total assets | US$ in thousands | 9,810,360 | 9,255,770 | 8,913,200 | 7,474,500 | 7,102,360 |
| Operating ROA | 5.32% | 12.71% | 2.37% | 3.28% | 9.72% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $522,286K ÷ $9,810,360K
= 5.32%
Pilgrim's Pride Corp.'s operating return on assets (operating ROA) has shown variability over the past five years.
In 2023, the operating ROA was 5.78%, representing a decrease from the previous year's figure of 13.04%. This decline indicates that the company may have experienced challenges in generating profits from its operating activities relative to its assets.
Compared to 2021, where the operating ROA was 2.43%, the current year's performance is an improvement, suggesting that the company may have made operational improvements to enhance its profitability.
However, when compared to 2020 and 2019, where the operating ROA stood at 3.29% and 9.72% respectively, the current year's figure is lower. This indicates that Pilgrim's Pride Corp. may not be utilizing its assets as efficiently to generate operating income as effectively as in the past.
Overall, the trend in Pilgrim's Pride Corp.'s operating ROA suggests some fluctuations in the company's ability to generate profits from its assets over the years, indicating the need for further analysis to identify potential areas for improvement.
Peer comparison
Dec 31, 2023