Somnigroup International Inc. (SGI)
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 | 634,200 | 628,500 | 609,900 | 595,400 | 607,200 | 632,400 | 650,200 | 635,300 | 680,600 | 784,300 | 833,100 | 912,500 | 912,300 | 854,700 | 785,100 | 615,200 | 532,100 | 423,500 | 363,900 | 391,500 |
| Total assets | US$ in thousands | 5,980,400 | 4,568,000 | 4,578,000 | 4,585,800 | 4,553,900 | 4,546,100 | 4,570,800 | 4,537,100 | 4,359,800 | 4,351,700 | 4,404,400 | 4,321,900 | 4,323,400 | 4,467,300 | 3,277,600 | 3,542,100 | 3,308,600 | 3,455,400 | 3,201,900 | 3,306,200 |
| Operating ROA | 10.60% | 13.76% | 13.32% | 12.98% | 13.33% | 13.91% | 14.23% | 14.00% | 15.61% | 18.02% | 18.92% | 21.11% | 21.10% | 19.13% | 23.95% | 17.37% | 16.08% | 12.26% | 11.37% | 11.84% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $634,200K ÷ $5,980,400K
= 10.60%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's efficiency in generating operating income relative to its total assets. The Operating ROA of Somnigroup International Inc. has shown fluctuations over the analyzed period, starting at 11.84% as of March 31, 2020, reaching a peak of 23.95% on June 30, 2021, and then gradually decreasing to 10.60% by December 31, 2024.
The trend of Operating ROA indicates the company's ability to utilize its assets to generate profits from its core business operations. During the period under review, Somnigroup International Inc. experienced periods of improved profitability, as evidenced by the increase in Operating ROA from 11.84% in March 2020 to 23.95% in June 2021. However, the ratio started to decline thereafter, reflecting potential challenges in maintaining the same level of operating efficiency.
It is essential for the company to closely monitor its Operating ROA as a lower ratio could signify inefficiencies in operations or asset utilization. By identifying the factors contributing to the fluctuations in Operating ROA, Somnigroup International Inc. can take strategic actions to enhance its operational performance and ultimately improve its overall profitability.
Peer comparison
Dec 31, 2024