Somnigroup International Inc. (SGI)
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 | 607,200 | 680,600 | 912,300 | 532,100 | 346,700 |
| Total assets | US$ in thousands | 4,553,900 | 4,359,800 | 4,323,400 | 3,308,600 | 3,061,800 |
| Operating ROA | 13.33% | 15.61% | 21.10% | 16.08% | 11.32% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $607,200K ÷ $4,553,900K
= 13.33%
Analyzing Somnigroup International Inc.'s operating return on assets (operating ROA) over the past five years reveals a fluctuating trend. The company's operating ROA increased from 11.32% in December 2019 to 16.08% in December 2020, indicating an improvement in the company's operating efficiency and profitability.
Subsequently, there was a significant rise in operating ROA to 21.10% by December 2021, reflecting a substantial increase in profitability relative to the assets employed. However, in December 2022, there was a decline in operating ROA to 15.61%, suggesting a potential decrease in operational efficiency or a change in the asset structure.
By December 2023, the operating ROA further decreased to 13.33%, signaling a continued but moderate decline in the company's ability to generate operating profits relative to its assets. Overall, while the company has experienced fluctuations in its operating ROA, it is essential for Somnigroup International Inc. to assess the factors influencing these fluctuations and take necessary actions to maintain or improve its operating efficiency and profitability in the future.
Peer comparison
Dec 31, 2023