Southwest Gas Holdings Inc (SWX)
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 | 483,771 | 418,330 | 1,145,850 | 1,090,880 | 423,004 |
| Total assets | US$ in thousands | 12,023,800 | 11,869,900 | 13,196,600 | 12,765,300 | 8,735,850 |
| Operating ROA | 4.02% | 3.52% | 8.68% | 8.55% | 4.84% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $483,771K ÷ $12,023,800K
= 4.02%
The operating return on assets (Operating ROA) for Southwest Gas Holdings Inc has shown some variability over the past five years.
In December 2020, the Operating ROA was recorded at 4.84%, indicating that the company generated 4.84 cents of operating income for every dollar of assets in that year. This figure increased significantly to 8.55% by December 2021, signifying improved efficiency in asset utilization and profitability.
The trend continued to rise in December 2022, reaching 8.68%, highlighting the company's ability to generate higher operating income relative to its asset base. However, there was a noticeable drop in December 2023, where the Operating ROA decreased to 3.52%, suggesting a potential decline in operational efficiency or profitability during that period.
By December 2024, the Operating ROA slightly rebounded to 4.02%, indicating a moderate improvement but still below the levels seen in 2021 and 2022. Overall, the fluctuating Operating ROA for Southwest Gas Holdings Inc indicates that the company's performance in generating operating income from its assets has been variable over the past five years.
Peer comparison
Dec 31, 2024