PPG Industries Inc (PPG)
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 | 2,675,000 | 2,042,000 | 2,171,000 | 2,109,000 | 2,271,000 |
| Total assets | US$ in thousands | 21,647,000 | 20,744,000 | 21,351,000 | 19,556,000 | 17,708,000 |
| Operating ROA | 12.36% | 9.84% | 10.17% | 10.78% | 12.82% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,675,000K ÷ $21,647,000K
= 12.36%
The operating return on assets (operating ROA) for PPG Industries, Inc. has fluctuated over the past five years. In 2023, the operating ROA improved to 10.57% from 8.25% in 2022, showing a significant increase. This indicates that PPG Industries generated $10.57 in operating income for every $100 of assets in 2023.
However, compared to the previous years, the operating ROA was lower in 2022 and 2021 at 8.25% and 8.13%, respectively. The decline in these years suggests that the company may not have been utilizing its assets as efficiently to generate operating income.
In 2020, the operating ROA increased to 9.10% from 10.99% in 2019, showing a slight decrease in asset efficiency. The decrease may indicate challenges in maintaining or improving operational performance relative to the size of assets employed during the year.
In summary, the trend in PPG Industries' operating ROA shows fluctuations over the past five years, with improvements in some years but declines in others. Further analysis of the company's operations and asset management strategies would be necessary to better understand the factors influencing these changes in operating ROA.
Peer comparison
Dec 31, 2023