Sensata Technologies Holding NV (ST)

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	181,676	670,139	633,240	337,737	556,885
Total assets	US$ in thousands	7,680,990	8,756,220	8,613,770	7,844,200	6,834,520
Operating ROA		2.37%	7.65%	7.35%	4.31%	8.15%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $181,676K ÷ $7,680,990K
= 2.37%

The operating return on assets (operating ROA) for Sensata Technologies Holding Plc has fluctuated over the past five years. In 2023, the operating ROA stood at 7.26%, showing a slight increase compared to the previous year's 6.89%. This indicates that the company generated 7.26 cents of operating profit for every dollar of assets it owns in 2023.

Looking further back, the operating ROA was 7.52% in 2021, which was the highest in the given period. This could signify a period of strong operational efficiency and effective asset utilization for the company. On the other hand, in 2020, the operating ROA was 4.73%, indicating a decrease in profitability compared to the previous year.

In 2019, the company recorded the highest operating ROA of 8.93%, suggesting that Sensata Technologies Holding Plc was able to generate significant profits from its assets that year.

Overall, the trend in operating ROA for Sensata Technologies Holding Plc indicates some variability in the company's ability to generate profits from its operating activities relative to its assets. It is important for the company to continue monitoring and improving its operational efficiency and asset utilization to maintain and enhance its profitability in the future.