Southwest Gas Holdings Inc (SWX)
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 | 418,330 | -24,398 | 369,547 | 423,004 | 371,811 |
| Total assets | US$ in thousands | 11,869,900 | 13,196,600 | 12,765,300 | 8,735,850 | 8,170,050 |
| Operating ROA | 3.52% | -0.18% | 2.89% | 4.84% | 4.55% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $418,330K ÷ $11,869,900K
= 3.52%
Operating return on assets (Operating ROA) measures the ability of Southwest Gas Holdings Inc to generate operating profits from its assets. The trend of Southwest Gas' Operating ROA over the past five years indicates fluctuations in the company's operational efficiency and asset utilization.
In 2023, the Operating ROA stood at 4.13%, showing an improvement from the previous year's 3.27%. This increase suggests that the company was able to generate higher operating income relative to its total assets compared to the prior year, signifying enhanced operational performance and efficiency.
The Operating ROA of 2.89% in 2021 was lower than the preceding year, indicating a decrease in the company's ability to generate operating income from its assets. However, the subsequent increase in 2022 and further improvement in 2023 indicate a potential rebound in operational efficiency.
Notably, the Operating ROA was relatively high in 2020 at 4.84%, indicating strong operational performance that year. However, the metric dipped slightly in 2019 to 4.55%, suggesting a minor decrease in operating profitability relative to total assets.
Overall, the trend in Southwest Gas Holdings Inc's Operating ROA reflects varying levels of operational efficiency and asset utilization over the past five years, with fluctuations implying changes in the company's ability to generate operating income from its asset base.
Peer comparison
Dec 31, 2023