SPX Corp (SPXC)
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 | 221,900 | 51,000 | 73,700 | 96,900 | 114,000 |
| Total assets | US$ in thousands | 2,439,700 | 1,930,900 | 2,628,600 | 2,333,700 | 2,167,800 |
| Operating ROA | 9.10% | 2.64% | 2.80% | 4.15% | 5.26% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $221,900K ÷ $2,439,700K
= 9.10%
The operating return on assets (ROA) for SPX Corp has fluctuated over the past five years. In 2019, the operating ROA was 5.26%, which then decreased to 4.15% in 2020 before slightly increasing to 2.80% in 2021. There was a notable improvement in 2022, with the operating ROA rising to 2.64%. However, the most significant increase occurred in 2023, where the operating ROA reached 9.10%.
This improvement in the operating ROA in 2023 suggests that SPX Corp was able to generate more operating income relative to its total assets compared to previous years. It indicates an increase in operational efficiency and effectiveness in utilizing the company's assets to generate profit. The significant increase in operating ROA from 2022 to 2023 could be attributed to various factors such as cost-cutting measures, revenue growth, improved operational performance, or strategic initiatives that enhanced profitability.
Overall, the upward trend in operating ROA in 2023 reflects positively on SPX Corp's operational performance and profitability, indicating that the company has been more efficient in generating operating income relative to its asset base.
Peer comparison
Dec 31, 2023