Smurfit WestRock plc (SW)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 741,653 | 833,079 | 1,132,079 | 1,938,208 | 2,483,402 | 2,906,312 | 3,247,508 | 3,014,999 | 2,741,238 | 2,319,360 |
| Total assets | US$ in thousands | 43,759,000 | 45,029,000 | 25 | 0 | 12,628,000 | — | 12,434,000 | 12,482,000 | — | — |
| Operating ROA | 1.69% | 1.85% | 4,528,316.00% | — | 19.67% | — | 26.12% | 24.15% | — | — |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $741,653K ÷ $43,759,000K
= 1.69%
Operating return on assets (ROA) is a key financial metric that indicates how efficiently a company is generating operating profits relative to its total assets. From the provided data for Smurfit WestRock plc, we can see fluctuations in the operating ROA over the periods specified:
1. As of December 31, 2022, the operating ROA was at a healthy 24.15%, indicating that the company was generating a relatively high level of operating income compared to its assets.
2. By June 30, 2023, the operating ROA had increased further to 26.12%, suggesting improved efficiency in utilizing assets to generate operating profits.
3. However, there is missing data for September 30, 2023, and March 31, 2024, which limits the trend analysis for those periods.
4. A significant anomaly is observed on June 30, 2024, where the reported operating ROA stands at an excessively high value of 4,528,316.00%. Such an abnormal value could be a data entry error and should be reviewed for accuracy.
5. Following the anomaly, the operating ROA declines sharply to 1.85% by September 30, 2024, and further drops slightly to 1.69% by December 31, 2024. These decreasing values suggest a potential decline in the company's ability to generate operating profits relative to its assets during these periods.
In conclusion, while operating ROA for Smurfit WestRock plc showed strong performance in some periods, the inclusion of anomalous data points and declining values towards the latter part of the period may warrant further investigation to understand the underlying factors influencing the company's operating profitability and asset utilization.
Peer comparison
Dec 31, 2024