Smurfit WestRock plc (SW)
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 | 1,007,000 | 1,382,860 | 1,439,000 | 1,073,000 | 891,000 |
| Total assets | US$ in thousands | — | 13,959,000 | 12,482,000 | 11,707,000 | 10,290,000 |
| Operating ROA | — | 9.91% | 11.53% | 9.17% | 8.66% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,007,000K ÷ $—K
= —
Operating Return on Assets (Operating ROA) is a key financial ratio that reflects the efficiency of Smurfit WestRock plc in generating profits from its assets used in its core operations.
From the available data:
- As of December 31, 2020, the Operating ROA was 8.66%. This indicates that for every dollar of assets employed in the company's operations, it generated a return of 8.66 cents in operating income.
- By December 31, 2021, the Operating ROA improved to 9.17%, suggesting an enhancement in operational efficiency and profitability from the assets deployed.
- There was a significant increase in Operating ROA by December 31, 2022, reaching 11.53%. This surge demonstrates a substantial boost in the company's ability to generate earnings from its operational assets.
- The Operating ROA decreased slightly to 9.91% by December 31, 2023, implying a minor dip in efficiency compared to the previous year.
- Unfortunately, data for December 31, 2024, is not available for analysis.
Overall, the trend in Operating ROA for Smurfit WestRock plc shows fluctuations over the years, with a notable increase in 2022. However, it is essential for the company to maintain or improve this ratio consistently to ensure effective utilization of its assets and sustained profitability in the long run.
Peer comparison
Dec 31, 2024