Spire Inc (SR)

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	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	407,600	418,600	572,700	598,600	583,500	528,600	473,700	469,000	481,200	518,800	423,600	283,900	237,000	206,400	180,700	300,500	299,500	302,300	309,000	354,600
Total assets	US$ in thousands	10,631,700	10,313,600	10,037,500	10,049,000	10,327,700	10,083,700	9,783,900	9,401,300	9,650,500	9,356,400	8,893,300	8,936,800	8,515,600	8,241,200	7,822,600	8,018,000	7,961,000	7,619,200	7,332,000	7,273,600
Operating ROA		3.83%	4.06%	5.71%	5.96%	5.65%	5.24%	4.84%	4.99%	4.99%	5.54%	4.76%	3.18%	2.78%	2.50%	2.31%	3.75%	3.76%	3.97%	4.21%	4.88%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $407,600K ÷ $10,631,700K
= 3.83%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's operating performance in relation to its total assets. It indicates the efficiency with which a company is using its assets to generate operating profit.

Analyzing the data provided for Spire Inc.'s Operating ROA over the past eight quarters reveals fluctuations in the company's operating efficiency. The values ranged from a low of 3.83% in Q1 2024 to a high of 4.76% in Q2 2023. This suggests that the company's ability to generate operating income from its assets varied during the period under review.

Overall, Spire Inc.'s Operating ROA averaged around 4.26% during this period. This indicates that, on average, the company was able to generate approximately 4.26 cents of operating profit from each dollar of assets invested.

The gradual decline in Operating ROA from Q2 2023 to Q1 2024 may raise concerns about the company's operational efficiency and asset utilization. Investors and stakeholders may want to further investigate the reasons behind this trend and assess the impact on Spire Inc.'s overall financial performance.

It is important to note that while Operating ROA provides valuable insights into a company's operational efficiency, it should be analyzed in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of Spire Inc.'s financial health and performance.