SunCoke Energy Inc (SXC)

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	151,900	125,100	153,700	141,500	69,700
Total assets	US$ in thousands	1,668,200	1,660,400	1,654,600	1,615,400	1,613,400
Operating ROA		9.11%	7.53%	9.29%	8.76%	4.32%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $151,900K ÷ $1,668,200K
= 9.11%

The operating return on assets (operating ROA) is a key financial ratio that indicates the company's efficiency in generating profits from its assets used in operations. SunCoke Energy Inc's operating ROA has exhibited fluctuations over the years:

1. As of December 31, 2020, the operating ROA stood at 4.32%, indicating that for every dollar of assets employed in operations, the company generated a return of 4.32 cents.

2. By December 31, 2021, the operating ROA saw a noticeable increase to 8.76%, reflecting an improvement in the company's operational efficiency and profitability from its asset base.

3. The trend continued to advance by December 31, 2022, with the operating ROA reaching 9.29%, demonstrating a further enhancement in the company's ability to generate returns from its operational assets.

4. However, by December 31, 2023, the operating ROA experienced a slight decline to 7.53%, indicating a potential dip in operational performance compared to the previous year.

5. Subsequently, as of December 31, 2024, the operating ROA rebounded to 9.11%, suggesting a recovery in the efficiency of asset utilization and profitability for SunCoke Energy Inc.

Overall, the analysis of SunCoke Energy Inc's operating ROA reveals fluctuations in the company's ability to convert its operational assets into profits over the specified period, with some years demonstrating significant improvements while others showing moderate declines. Assessing the factors driving these variations can provide insights into the company's operational effectiveness and strategy execution.