Stepan Company (SCL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 70,480 | 58,613 | 105,148 | 86,611 | 92,086 |
| Total assets | US$ in thousands | 2,304,650 | 2,363,350 | 2,433,170 | 2,065,610 | 1,752,340 |
| Operating ROA | 3.06% | 2.48% | 4.32% | 4.19% | 5.26% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $70,480K ÷ $2,304,650K
= 3.06%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates how efficiently a company is generating profits from its assets used in operations. Analyzing Stepan Company's Operating ROA over the past five years, we observe a fluctuating trend.
In 2020, Stepan Company's Operating ROA stood at 5.26%, reflecting a healthy profitability relative to its asset base. However, there was a decline in 2021 to 4.19%, indicating a slight decrease in efficiency in generating profits from its assets.
During 2022, the Operating ROA improved slightly to 4.32%, suggesting a potential recovery in profitability. Subsequently, in 2023, there was a notable decrease to 2.48%, signaling a significant decline in the company's ability to generate earnings from its assets efficiently.
In the most recent year, 2024, Stepan Company's Operating ROA increased to 3.06%, showing a slight improvement compared to the previous year. Overall, the fluctuating trend in Operating ROA over the past five years indicates that Stepan Company has experienced varying levels of efficiency in using its assets to generate profits, possibly impacted by internal and external factors affecting its operational performance.
Further detailed analysis and comparison with industry benchmarks may provide insights into the company's operational efficiency and profitability trends over time.
Peer comparison
Dec 31, 2024