Resideo Technologies Inc (REZI)
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 | 547,000 | 611,000 | 559,000 | 311,000 | 258,000 |
| Total assets | US$ in thousands | 6,645,000 | 6,387,000 | 5,853,000 | 5,610,000 | 5,128,000 |
| Operating ROA | 8.23% | 9.57% | 9.55% | 5.54% | 5.03% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $547,000K ÷ $6,645,000K
= 8.23%
Resideo Technologies Inc's operating return on assets (ROA) has shown a fluctuating trend over the past five years. The operating ROA was 8.86% in 2023, a decrease from 10.11% in 2022 but still higher than the 2019 and 2020 figures of 5.03% and 5.54%, respectively. This indicates a relatively stable performance in generating operating income relative to its assets in 2023, albeit slightly lower than the prior year. The company's operating efficiency seems to have improved compared to 2019 and 2020, suggesting potential enhancements in asset utilization and profitability. Further analysis would be needed to understand the factors influencing these fluctuations in operating ROA to assess the company's operational effectiveness and financial health.