Resideo Technologies Inc (REZI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 520,000 | 547,000 | 611,000 | 401,000 | 164,000 |
| Total assets | US$ in thousands | 8,199,000 | 6,645,000 | 6,387,000 | 5,853,000 | 5,610,000 |
| Operating ROA | 6.34% | 8.23% | 9.57% | 6.85% | 2.92% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $520,000K ÷ $8,199,000K
= 6.34%
Over the five-year period from December 31, 2020, to December 31, 2024, Resideo Technologies Inc's operating return on assets (operating ROA) has shown a fluctuating trend. Starting at 2.92% in 2020, the operating ROA increased significantly to 6.85% in 2021, further rising to 9.57% by the end of 2022. However, in 2023, there was a slight decrease to 8.23%, followed by a notable decline to 6.34% in 2024.
The upward trajectory from 2020 to 2022 indicates that the company was able to improve its operational efficiency in generating profits from its assets. However, the subsequent decline in 2023 and 2024 may suggest potential challenges or shifts in the company's operations impacting its profitability relative to its asset base.
Further analysis of the factors driving these fluctuations, such as changes in revenue, operating costs, asset management strategies, or overall market conditions, would provide additional insights into Resideo Technologies Inc's financial performance and operational effectiveness.