Sempra Energy (SRE)
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 | 4,548,000 | 3,599,000 | 1,633,000 | 2,203,000 | 2,918,000 |
| Total assets | US$ in thousands | 87,181,000 | 78,574,000 | 72,045,000 | 66,623,000 | 65,665,000 |
| Operating ROA | 5.22% | 4.58% | 2.27% | 3.31% | 4.44% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $4,548,000K ÷ $87,181,000K
= 5.22%
Operating ROA measures the company's ability to generate profits from its operations relative to its total assets. Sempra's operating ROA has fluctuated over the past five years. In 2023, the operating ROA increased to 4.26% from 3.25% in 2022, indicating an improvement in the company's operational efficiency and profitability. Despite this improvement in 2023, the operating ROA in 2023 is still lower compared to 2019 when it was 4.00%.
Overall, the trend in operating ROA for Sempra shows some variability over the years, but the company has managed to maintain positive returns relative to its asset base. It is essential for the company to continue monitoring and improving its operational efficiency to sustain and potentially increase its operating ROA in the future.
Peer comparison
Dec 31, 2023