Ryder System Inc (R)
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 | 8,747,000 | 9,074,000 | 7,353,380 | 6,385,700 | 6,948,430 |
| Total assets | US$ in thousands | 15,778,000 | 14,395,000 | 13,835,000 | 12,932,000 | 14,475,300 |
| Operating ROA | 55.44% | 63.04% | 53.15% | 49.38% | 48.00% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $8,747,000K ÷ $15,778,000K
= 55.44%
Ryder System, Inc.'s operating return on assets (operating ROA) has fluctuated over the past five years. The trend shows a gradual increase from 1.78% in 2020 to 5.56% in 2023, with a peak of 6.77% in 2022. This indicates that the company has been able to improve its efficiency in generating operating income relative to its total assets.
The increase in operating ROA suggests that Ryder has been able to generate higher operating earnings from its asset base, which is a positive sign of operational efficiency and profitability. This improvement may be attributed to factors such as better cost management, increased revenue generation, or more effective asset utilization strategies.
Overall, the upward trend in Ryder System, Inc.'s operating ROA over the past five years indicates an improvement in the company's operational performance and efficiency in utilizing its assets to generate operating income.
Peer comparison
Dec 31, 2023