Rollins Inc (ROL)
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 | 583,226 | 493,388 | 447,636 | 376,088 | 317,394 |
| Total assets | US$ in thousands | 2,595,460 | 2,122,030 | 2,021,540 | 1,845,900 | 1,744,380 |
| Operating ROA | 22.47% | 23.25% | 22.14% | 20.37% | 18.20% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $583,226K ÷ $2,595,460K
= 22.47%
Rollins, Inc.'s operating return on assets (ROA) has shown a consistent positive trend over the past five years. The operating ROA increased from 18.20% in 2019 to 22.67% in 2023, reflecting an improvement in the company's efficiency in generating operating income from its assets. This indicates that Rollins, Inc. has been effectively utilizing its assets to generate operating profits.
The stable and increasing trend in operating ROA highlights the company's ability to effectively manage its operations and maximize returns on its assets over time. The gradual improvement in operating ROA from 2019 to 2023 suggests that Rollins, Inc. has been successful in enhancing its operational efficiency and profitability.
A high operating ROA signifies that Rollins, Inc. is generating substantial operating profits relative to its assets, which is a positive indicator of the company's financial health and operational performance. Overall, the trend in operating ROA for Rollins, Inc. demonstrates the company's ability to efficiently utilize its assets to generate operating income and create value for its stakeholders.
Peer comparison
Dec 31, 2023