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