PPL Corporation (PPL)
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 | 1,630,000 | 1,374,000 | 1,424,000 | 1,586,000 | 1,526,000 |
| Total assets | US$ in thousands | 39,236,000 | 37,837,000 | 33,223,000 | 48,116,000 | 45,680,000 |
| Operating ROA | 4.15% | 3.63% | 4.29% | 3.30% | 3.34% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,630,000K ÷ $39,236,000K
= 4.15%
PPL Corp's operating return on assets (ROA) has shown a fluctuating trend over the past five years. The operating ROA for the most recent year, ending December 31, 2023, was 4.15%, representing a slight increase from the preceding year. However, compared to the levels observed in 2020 and 2019, there has been a noticeable decline in operating ROA.
The operating ROA values for 2021, 2022, and 2023 are all below the 5% mark, indicating a decreasing trend in the company's ability to generate operating income from its assets. This may suggest that PPL Corp is experiencing challenges in efficiently utilizing its assets to generate profit from its core operations.
It is important for PPL Corp to closely monitor and analyze the factors influencing its operating ROA to identify areas for improvement. Management should focus on enhancing operational efficiency, optimizing asset utilization, and driving profitability to improve the company's overall financial performance in the future.
Peer comparison
Dec 31, 2023