SPX Corp (SPXC)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 308,300 | 221,900 | 51,000 | 73,700 | 132,000 |
| Total assets | US$ in thousands | 2,714,500 | 2,439,700 | 1,930,900 | 2,628,600 | 2,297,700 |
| Operating ROA | 11.36% | 9.10% | 2.64% | 2.80% | 5.74% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $308,300K ÷ $2,714,500K
= 11.36%
The operating return on assets (ROA) of SPX Corp has shown variation over the past five years. In December 2020, the operating ROA stood at 5.74%, indicating that the company generated $0.0574 in operating income for every dollar of assets. However, by December 2021, this ratio decreased to 2.80%, suggesting a decline in the efficiency of asset utilization.
In the subsequent years, there was further reduction in the operating ROA. By December 2022, it dropped to 2.64%, reflecting a continued challenge in optimizing asset productivity within the business. However, in December 2023, there was a significant improvement as the operating ROA surged to 9.10%, indicating a substantial increase in operating income relative to the assets deployed.
The trend continued to improve in December 2024, with the operating ROA reaching 11.36%. This significant uptick suggests that the company became more efficient in generating operating income from its asset base.
Overall, the fluctuation in SPX Corp's operating ROA indicates a mixed performance in asset utilization efficiency over the years, with a notable resurgence in the most recent periods.
Peer comparison
Dec 31, 2024