Stanley Black & Decker Inc (SWK)
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 | 1,181,700 | 620,300 | 956,900 | 1,816,600 | 1,472,100 |
| Total assets | US$ in thousands | 21,848,900 | 23,663,800 | 24,963,300 | 28,197,600 | 23,566,300 |
| Operating ROA | 5.41% | 2.62% | 3.83% | 6.44% | 6.25% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,181,700K ÷ $21,848,900K
= 5.41%
The operating return on assets (operating ROA) for Stanley Black & Decker Inc has fluctuated over the years based on the data provided.
- In 2020, the operating ROA stood at 6.25%, indicating that for every dollar of assets the company had, it generated a return of 6.25 cents from its operations.
- The operating ROA slightly increased to 6.44% in 2021, showing a positive trend in profitability and efficiency of asset utilization.
- However, the operating ROA decreased notably in 2022 to 3.83% and further declined to 2.62% in 2023. This significant drop may suggest challenges in effectively utilizing assets to generate operating income.
- The operating ROA recovered in 2024, reaching 5.41%, indicating a partial improvement in asset performance and operational efficiency compared to the previous years.
Overall, the trend in Stanley Black & Decker Inc's operating ROA shows fluctuations, suggesting variations in the company's ability to generate profits from its assets over the years. It would be important for the company to analyze the reasons behind these fluctuations and implement strategies to enhance asset utilization efficiency for sustained profitability.
Peer comparison
Dec 31, 2024