Stanley Black & Decker Inc (SWK)

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	-5,200,800	-156,300	1,031,200	2,176,000	1,994,000
Total assets	US$ in thousands	23,663,800	24,963,300	28,180,000	23,566,300	20,596,600
Operating ROA		-21.98%	-0.63%	3.66%	9.23%	9.68%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-5,200,800K ÷ $23,663,800K
= -21.98%

Stanley Black & Decker Inc's operating return on assets (operating ROA) has experienced a significant decline over the past five years, with a negative value of -21.98% in 2023 compared to positive values in the preceding years. This suggests that the company's operating income generated from its assets has deteriorated substantially, indicating inefficiency and potential operational challenges. It is crucial for the company to investigate and address the underlying reasons for this decline to improve its financial performance and sustainable growth in the future.

Peer comparison

Dec 31, 2023

Company name

Symbol

Operating ROA

Stanley Black & Decker Inc

SWK

-21.98%

Simpson Manufacturing Company Inc