Sylvamo Corp (SLVM)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 98,000 | 104,000 | 188,000 | 325,000 | 276,000 | 288,000 | 402,000 | |||
| Total assets | US$ in thousands | 2,872,000 | 2,785,000 | 2,823,000 | 2,798,000 | 2,710,000 | 2,797,000 | 2,741,000 | 2,709,000 | 2,597,000 | 2,737,000 |
| Operating ROA | 3.41% | 3.73% | 6.66% | 11.62% | 10.18% | 10.30% | 14.67% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $98,000K ÷ $2,872,000K
= 3.41%
Sylvamo Corp's operating return on assets (ROA) has shown a declining trend over the five quarters provided. The operating ROA decreased from 19.78% in Q4 2022 to 15.63% in Q4 2023. This downward trend suggests that the company may be experiencing challenges in generating operating profits from its assets efficiently.
The operating ROA of 15.63% in Q4 2023 indicates that the company is generating $0.1563 in operating income for every dollar of assets it has. This implies a lower level of efficiency in utilizing its assets to generate operating profits compared to previous quarters.
Furthermore, the operating ROA of Sylvamo Corp has remained below 20% for the past five quarters, indicating that the company may not be maximizing the returns from its asset base.
It is essential for Sylvamo Corp to closely monitor and analyze the factors contributing to the declining trend in operating ROA to identify areas for improvement and enhance operational efficiency in order to generate better returns on its assets in the future.
Peer comparison
Dec 31, 2023