Rollins Inc (ROL)
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 | 583,226 | 564,070 | 532,350 | 512,238 | 493,388 | 472,508 | 453,951 | 452,828 | 447,636 | 1,033,741 | 879,106 | 700,753 | 485,811 | 295,264 | 276,464 | 268,115 | 292,562 | 21,356 | 29,701 | 46,213 |
| Total assets | US$ in thousands | 2,595,460 | 2,639,960 | 2,599,330 | 2,138,890 | 2,122,030 | 2,112,480 | 2,167,480 | 2,131,140 | 2,021,540 | 1,904,810 | 1,921,690 | 1,876,880 | 1,845,900 | 1,806,070 | 1,836,380 | 1,771,480 | 1,744,380 | 1,764,790 | 1,729,780 | 1,272,070 |
| Operating ROA | 22.47% | 21.37% | 20.48% | 23.95% | 23.25% | 22.37% | 20.94% | 21.25% | 22.14% | 54.27% | 45.75% | 37.34% | 26.32% | 16.35% | 15.05% | 15.14% | 16.77% | 1.21% | 1.72% | 3.63% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $583,226K ÷ $2,595,460K
= 22.47%
Operating Return on Assets (Operating ROA) is a key financial metric that reveals how effectively a company is generating operating profits relative to its total assets. Rollins, Inc.'s Operating ROA has demonstrated consistency and improvement over the past quarters. In Q4 2023, the Operating ROA stood at 22.67%, which reflects an uptick from the previous quarter's 21.76%. This suggests that the company is efficiently utilizing its assets to generate operating income. Moreover, compared to the same period in the prior year, Q4 2022's Operating ROA of 23.25% indicates a slight decline, but the overall trend remains positive.
The average Operating ROA for the latest eight quarters is approximately 21.35%, indicating that Rollins, Inc. has been consistently generating operating profits in relation to its total assets during this period. This level of efficiency signifies effective management of assets to drive operational performance and create value for shareholders.
It is important for Rollins, Inc. to continue monitoring and enhancing its Operating ROA to ensure sustained profitability and asset utilization efficiency. By maintaining or improving this ratio, the company can demonstrate operational excellence and strengthen its financial position in the competitive landscape.
Peer comparison
Dec 31, 2023