Sensata Technologies Holding NV (ST)

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 149,276 181,676 508,821 633,240 337,737
Total assets US$ in thousands 7,143,260 7,680,990 8,756,220 8,613,770 7,844,200
Operating ROA 2.09% 2.37% 5.81% 7.35% 4.31%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $149,276K ÷ $7,143,260K
= 2.09%

The operating return on assets (Operating ROA) of Sensata Technologies Holding NV has shown fluctuations over the years based on the provided data.

- As of December 31, 2020, the Operating ROA was 4.31%, indicating that the company generated $0.0431 in operating income for every $1 of assets it had.
- By December 31, 2021, the Operating ROA improved to 7.35%, showing a significant increase in efficiency in generating operating income relative to its assets.
- However, by December 31, 2022, the Operating ROA decreased to 5.81%, suggesting a slight decline in the company's operating performance.
- Subsequently, by December 31, 2023, the Operating ROA dropped further to 2.37%, indicating a significant decrease in the company's ability to generate operating income from its assets.
- Finally, as of December 31, 2024, the Operating ROA decreased to 2.09%, continuing the downward trend in the company's operational efficiency.

Overall, the trend in Sensata Technologies' Operating ROA suggests variability in the company's ability to generate operating income in relation to its asset base, with notable improvements in some years but also declines in others. This highlights the importance of analyzing the company's operational performance and asset management strategies to understand the factors driving these fluctuations in Operating ROA.