Stepan Company (SCL)
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 | 58,613 | 70,074 | 105,216 | 165,047 | 207,336 | 215,642 | 201,196 | 180,213 | 170,781 | 126,389 | 128,571 | 116,537 | 102,627 | 155,513 | 141,084 | 137,526 | 127,260 | 134,220 | 133,399 | 137,720 |
| Total assets | US$ in thousands | 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 | 1,579,370 | 1,518,370 | 1,528,970 | 1,526,000 |
| Operating ROA | 2.48% | 3.00% | 4.33% | 6.75% | 8.52% | 9.23% | 8.79% | 7.93% | 8.27% | 6.46% | 6.81% | 6.38% | 5.86% | 9.61% | 9.14% | 9.13% | 8.06% | 8.84% | 8.72% | 9.02% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $58,613K ÷ $2,363,350K
= 2.48%
The operating return on assets (operating ROA) for Stepan Co. has been gradually declining over the past eight quarters. The trend started at a high of 9.06% in Q3 2022 and has since decreased to 3.26% in Q4 2023. This suggests that the company's ability to generate operating income from its assets has been weakening.
The decreasing trend in operating ROA could indicate that the company is facing challenges in efficiently utilizing its assets to generate operating profits. It may be experiencing operational inefficiencies, increased operating expenses, or declining revenues relative to its asset base.
Investors and stakeholders should closely monitor this metric to assess the company's operational performance and efficiency in utilizing its assets. It may be beneficial for Stepan Co. to conduct a thorough review of its operations and implement strategies to improve its operating ROA in order to enhance profitability and competitiveness in the market.
Peer comparison
Dec 31, 2023