TE Connectivity Ltd (TEL)
Operating return on assets (Operating ROA)
Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
---|---|---|---|---|---|---|
Operating income | US$ in thousands | 2,796,000 | 2,304,000 | 2,756,000 | 2,434,000 | 537,000 |
Total assets | US$ in thousands | 22,854,000 | 21,712,000 | 20,782,000 | 21,462,000 | 19,242,000 |
Operating ROA | 12.23% | 10.61% | 13.26% | 11.34% | 2.79% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,796,000K ÷ $22,854,000K
= 12.23%
TE Connectivity Ltd's operating return on assets (operating ROA) has shown a positive trend over the last five years, increasing from 2.79% in 2020 to 12.23% in 2024. This indicates an improvement in the company's ability to generate earnings from its operating assets.
The significant increase in operating ROA from 2020 to 2021 suggests that TE Connectivity Ltd has effectively managed its assets to generate higher operating income. The subsequent fluctuations in operating ROA in the following years indicate some variability in the company's operational efficiency.
The highest operating ROA was observed in 2022 at 13.26%, which may indicate that TE Connectivity Ltd was able to optimize its assets to generate a higher level of operating profit that year. The slight decrease in operating ROA in 2023 and the subsequent increase in 2024 may reflect changes in the company's asset utilization and profitability.
Overall, TE Connectivity Ltd's operating ROA performance demonstrates a positive trend over the five-year period, with fluctuations in between. This suggests that the company has been able to enhance its operating efficiency and profitability relative to its assets.
Peer comparison
Sep 30, 2024