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.