Terex Corporation (TEX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 636,500 | 420,000 | 328,000 | 68,400 | 335,000 |
| Total assets | US$ in thousands | 3,615,500 | 3,118,100 | 2,863,500 | 3,031,800 | 3,195,600 |
| Operating ROA | 17.60% | 13.47% | 11.45% | 2.26% | 10.48% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $636,500K ÷ $3,615,500K
= 17.60%
The operating return on assets (ROA) of Terex Corp. has shown an improving trend over the past five years. From 2019 to 2020, there was a significant increase in the operating ROA from 10.48% to 2.26%. This improvement continued in the following years, with the operating ROA rising to 11.45% in 2021, further to 13.47% in 2022, and reaching 17.60% in 2023.
The increasing trend in operating ROA indicates that Terex Corp. has been able to generate more operating income relative to its assets over the years. This could be attributed to better operational efficiency, cost management, or revenue growth initiatives implemented by the company.
Overall, the consistent improvement in operating ROA demonstrates the company's ability to effectively utilize its assets to generate operating profits, reflecting positively on its operational performance and efficiency.