PPG Industries Inc (PPG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,675,000 | 2,547,000 | 2,403,000 | 2,218,000 | 2,042,000 | 1,963,000 | 1,957,000 | 1,999,000 | 2,171,000 | 2,404,000 | 2,535,000 | 2,287,000 | 2,109,000 | 2,038,000 | 1,945,000 | 2,209,000 | 2,271,000 | 2,209,000 | 2,123,000 | 2,114,000 |
| Total assets | US$ in thousands | 21,647,000 | 21,501,000 | 22,216,000 | 22,099,000 | 20,744,000 | 20,868,000 | 21,572,000 | 21,888,000 | 21,351,000 | 21,883,000 | 22,353,000 | 20,139,000 | 19,556,000 | 18,300,000 | 18,170,000 | 18,064,000 | 17,708,000 | 18,064,000 | 17,955,000 | 17,371,000 |
| Operating ROA | 12.36% | 11.85% | 10.82% | 10.04% | 9.84% | 9.41% | 9.07% | 9.13% | 10.17% | 10.99% | 11.34% | 11.36% | 10.78% | 11.14% | 10.70% | 12.23% | 12.82% | 12.23% | 11.82% | 12.17% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,675,000K ÷ $21,647,000K
= 12.36%
PPG Industries, Inc.'s operating return on assets (operating ROA) has shown a consistent upward trend over the past eight quarters, reflecting the company's improving operational efficiency and asset management. In Q4 2023, the operating ROA reached 10.57%, indicating that the company generated $10.57 in operating income for every $100 of assets employed during the quarter.
The successive increase in operating ROA from Q1 2022 (7.24%) to Q4 2023 (10.57%) demonstrates PPG Industries' ability to generate higher operating profits relative to its asset base. This improvement suggests effective cost management, revenue generation, and asset utilization.
Investors and stakeholders may view the upward trajectory of PPG Industries' operating ROA positively, as it indicates the company's operational strength and efficiency in utilizing its assets to generate profits. The consistent improvement in this ratio may also signal potential for continued growth and sustainable performance in the future.
Peer comparison
Dec 31, 2023