Robert Half International Inc (RHI)

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 555,493 640,075 733,838 827,757 890,614 914,484 918,781 882,839 805,825 712,941 587,591 441,251 421,758 445,264 505,513 606,666 621,751 622,431 610,678 600,787
Total assets US$ in thousands 3,010,790 3,021,050 3,067,640 2,912,130 2,964,490 2,910,580 2,933,840 2,950,770 2,952,360 2,931,720 2,741,370 2,565,170 2,557,420 2,563,090 2,402,380 2,274,850 2,311,410 2,311,570 2,239,420 2,204,610
Operating ROA 18.45% 21.19% 23.92% 28.42% 30.04% 31.42% 31.32% 29.92% 27.29% 24.32% 21.43% 17.20% 16.49% 17.37% 21.04% 26.67% 26.90% 26.93% 27.27% 27.25%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $555,493K ÷ $3,010,790K
= 18.45%

Operating return on assets (operating ROA) is a key financial ratio that indicates the efficiency with which a company is generating operating income relative to its total assets.

Analyzing the trend of Robert Half Inc's operating ROA over the past eight quarters reveals a gradual decline in the ratio. In Q1 2022, the operating ROA stood at 29.14%, which peaked in Q4 2022 at 32.89%. However, since then, the ratio has steadily decreased reaching 15.43% in Q4 2023.

The downward trend in operating ROA suggests that the company's ability to generate operating income from its assets has weakened over time. This may indicate inefficiencies in utilizing its assets effectively to generate profits. Management should evaluate the contributing factors to this decline and implement strategies to improve operational efficiency and asset utilization in order to enhance profitability.


Peer comparison

Dec 31, 2023