Stepan Company (SCL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 72,256 | 72,970 | 68,538 | 67,682 | 66,792 | 45,640 | 57,260 | 117,091 | 134,867 | 167,607 | 176,683 | 155,700 | 170,781 | 195,284 | 197,466 | 185,432 | 171,522 | 155,513 | 141,084 | 137,526 |
| Total assets | US$ in thousands | 2,304,650 | 2,413,790 | 2,348,590 | 2,373,150 | 2,363,350 | 2,333,530 | 2,430,820 | 2,445,940 | 2,433,170 | 2,336,770 | 2,288,800 | 2,272,600 | 2,065,610 | 1,955,940 | 1,887,300 | 1,827,940 | 1,752,340 | 1,617,650 | 1,543,410 | 1,506,300 |
| Operating ROA | 3.14% | 3.02% | 2.92% | 2.85% | 2.83% | 1.96% | 2.36% | 4.79% | 5.54% | 7.17% | 7.72% | 6.85% | 8.27% | 9.98% | 10.46% | 10.14% | 9.79% | 9.61% | 9.14% | 9.13% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $72,256K ÷ $2,304,650K
= 3.14%
Operating Return on Assets (Operating ROA) is a key financial metric that measures a company's efficiency in generating profits from its operational assets. Stepan Company's Operating ROA has shown fluctuations over the period from March 31, 2020, to December 31, 2024.
The trend in Stepan Company's Operating ROA indicates a gradual increase from March 2020 to June 2021, reaching a peak of 10.46% in June 2021. This upward trend suggests that the company was effectively utilizing its operational assets to generate profits during this period.
However, starting from September 2021, there was a notable decline in Stepan Company's Operating ROA, dropping to 5.54% by December 2022. This decline may indicate a decrease in the company's operational efficiency and profitability relative to its asset base.
Subsequently, there was a slight recovery in Operating ROA from March 2023 to June 2024, although the values remained relatively low compared to the peak in June 2021. This suggests that Stepan Company may have implemented strategies to improve its operational efficiency, but the impact on profitability was limited.
Overall, the analysis of Stepan Company's Operating ROA highlights fluctuations in the company's ability to generate profits from its operational assets over the period under consideration. Further investigation into the factors contributing to these fluctuations would provide valuable insights into the company's financial performance.
Peer comparison
Dec 31, 2024