TE Connectivity Ltd (TEL)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,304,000 | 2,756,000 | 2,434,000 | 537,000 | 1,978,000 |
| Total assets | US$ in thousands | 21,712,000 | 20,782,000 | 21,462,000 | 19,242,000 | 19,694,000 |
| Operating ROA | 10.61% | 13.26% | 11.34% | 2.79% | 10.04% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,304,000K ÷ $21,712,000K
= 10.61%
TE Connectivity Ltd's operating return on assets (operating ROA) has varied over the past five years. In Sep 2023, the operating ROA was 10.61%, a decrease from 13.26% in Sep 2022. This indicates a decline in the company's ability to generate operating income from its assets.
Compared to Sep 2021 when the operating ROA was 11.34%, the current figure is slightly lower, suggesting a slight decrease in operational efficiency. However, it is important to note that the operating ROA in Sep 2023 is significantly higher than the figure in Sep 2020, which was only 2.79%.
In Sep 2019, TE Connectivity Ltd had a relatively high operating ROA of 10.04%, similar to the current figure in Sep 2023. This indicates that the company has managed to maintain a relatively stable level of operational efficiency over the past five years, with some fluctuations.
Overall, while there has been some variability in TE Connectivity Ltd's operating ROA over the years, the current figure of 10.61% suggests that the company is effectively utilizing its assets to generate operating income, although there may be room for improvement compared to previous years.
Peer comparison
Sep 30, 2023