Sylvamo Corp (SLVM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Operating income | US$ in thousands | 156,000 | 283,000 | 734,000 |
| Total assets | US$ in thousands | 2,872,000 | 2,710,000 | 2,597,000 |
| Operating ROA | 5.43% | 10.44% | 28.26% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $156,000K ÷ $2,872,000K
= 5.43%
Sylvamo Corp's operating return on assets (operating ROA) has exhibited fluctuations over the past four years. In 2023, the operating ROA was 15.63%, which indicates that the company generated $0.1563 in operating income for every $1 of assets. This represents a decrease from the previous year's figure of 19.78% in 2022.
Despite the decline in 2023, Sylvamo Corp's operating ROA remains relatively strong compared to 2021 and 2020, where the figures were 17.64% and 6.66% respectively. The significant increase from 2020 to 2021 shows an improvement in the company's operational efficiency in utilizing its assets to generate profits.
It is important to further investigate the factors contributing to the fluctuations in Sylvamo Corp's operating ROA over the years to assess the company's performance and sustainability. Additional analysis of the company's financial statements and operational strategies would provide more insights into the trend observed in the operating ROA.
Peer comparison
Dec 31, 2023