Stericycle Inc (SRCL)
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 | 77,300 | 153,700 | 72,300 | 31,900 | -211,900 |
| Total assets | US$ in thousands | 5,352,600 | 5,334,100 | 5,473,100 | 5,581,900 | 6,437,000 |
| Operating ROA | 1.44% | 2.88% | 1.32% | 0.57% | -3.29% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $77,300K ÷ $5,352,600K
= 1.44%
Operating return on assets (operating ROA) measures how efficiently a company generates operating income from its assets. Stericycle Inc.'s operating ROA has shown variations over the past five years. In 2023, the operating ROA increased to 2.63%, demonstrating a slight improvement compared to the previous year's 2.59%. However, it is essential to note that the operating ROA was significantly lower in 2021 at 1.29% but rebounded in 2022 and 2020 at 2.79% and 1.85%, respectively.
The fluctuation in Stericycle Inc.'s operating ROA indicates changes in the company's ability to utilize its assets effectively to generate operating profits. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to understand the company's operational efficiency and profitability trends better.
Peer comparison
Dec 31, 2023