Pilgrims Pride Corp (PPC)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,506,070 | 522,286 | 1,176,600 | 211,164 | 245,463 |
| Total assets | US$ in thousands | 10,650,600 | 9,810,360 | 9,255,770 | 8,913,200 | 7,474,500 |
| Operating ROA | 14.14% | 5.32% | 12.71% | 2.37% | 3.28% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,506,070K ÷ $10,650,600K
= 14.14%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the efficiency of Pilgrims Pride Corp in generating profits from its assets dedicated to operations. Analyzing the trend in operating ROA over the years reveals important insights into the company's operational performance.
In December 2020, Pilgrims Pride Corp's Operating ROA stood at 3.28%. This indicates that for every dollar of assets employed in operations, the company generated a return of 3.28 cents. However, by December 2021, the operating ROA decreased to 2.37%, signaling a decline in the company's efficiency in utilizing its operational assets to generate profits.
The year 2022 witnessed a significant improvement in Pilgrims Pride Corp's operational efficiency, with the operating ROA soaring to 12.71%. This sharp increase suggests a commendable performance in generating profits from its operational assets during that period.
Subsequently, in December 2023, the operating ROA decreased to 5.32%, indicating a slight dip in the company's profitability relative to its operational assets. However, by December 2024, Pilgrims Pride Corp's operational efficiency bounced back strongly, with the operating ROA reaching a noteworthy 14.14%.
Overall, the fluctuation in Pilgrims Pride Corp's Operating ROA reflects varying degrees of success in effectively utilizing its operational assets to generate profits over the years. The company's ability to sustain and improve Operating ROA will be crucial in driving long-term profitability and shareholder value.
Peer comparison
Dec 31, 2024