TE Connectivity Ltd (TEL)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,796,000 | 2,780,000 | 2,655,000 | 2,500,000 | 2,304,000 | 2,329,000 | 2,418,000 | 2,586,000 | 2,756,000 | 2,756,000 | 2,751,000 | 2,658,000 | 2,434,000 | 2,121,000 | 1,541,000 | 514,000 | 537,000 | 634,000 | 1,020,000 | 1,965,000 |
| Total assets | US$ in thousands | 22,854,000 | 22,898,000 | 22,824,000 | 23,071,000 | 21,712,000 | 21,701,000 | 21,490,000 | 21,353,000 | 20,782,000 | 21,348,000 | 21,451,000 | 21,409,000 | 21,462,000 | 21,058,000 | 20,967,000 | 20,266,000 | 19,242,000 | 18,840,000 | 19,367,000 | 19,976,000 |
| Operating ROA | 12.23% | 12.14% | 11.63% | 10.84% | 10.61% | 10.73% | 11.25% | 12.11% | 13.26% | 12.91% | 12.82% | 12.42% | 11.34% | 10.07% | 7.35% | 2.54% | 2.79% | 3.37% | 5.27% | 9.84% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,796,000K ÷ $22,854,000K
= 12.23%
TE Connectivity Ltd's operating return on assets (ROA) has shown varying trends over the past few quarters. The operating ROA has been relatively stable, ranging from 10.07% to 13.26%, with the highest point in the last ten quarters being 13.26% in September 2022.
The operating ROA has generally been on an upward trend until March 2023, after which there was a slight decline before picking up again. This indicates that the company has been effectively utilizing its assets to generate operating income, with a peak performance in terms of generating operating income relative to its assets in September 2022.
However, it is essential to note the significant decrease in operating ROA from March 2021 to March 2022, where it dropped from 7.35% to 12.82%, highlighting a period of decreased efficiency in generating operating income from assets. The subsequent recovery and improvement in operating ROA suggest that the company has taken steps to optimize its asset management and operational efficiency.
Overall, TE Connectivity Ltd's operating ROA reflects the company's ability to generate operating income from its assets, with some fluctuations over time, and suggests a positive trend towards efficient asset utilization.
Peer comparison
Sep 30, 2024