Terex Corporation (TEX)
Operating return on assets (Operating ROA)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 636,500 | 641,600 | 599,200 | 493,200 | 420,000 | 369,000 | 322,400 | 341,000 | 328,000 | 289,800 | 252,100 | 137,000 | 68,400 | 59,700 | 109,600 | 228,200 | 335,000 | 393,700 | 411,500 | 417,900 |
| Total assets | US$ in thousands | 3,615,500 | 3,461,100 | 3,415,200 | 3,281,200 | 3,118,100 | 2,976,500 | 2,993,700 | 2,939,900 | 2,863,500 | 3,067,900 | 3,068,500 | 2,965,500 | 3,031,800 | 2,915,200 | 2,864,300 | 3,114,700 | 3,195,600 | 3,160,700 | 3,603,100 | 3,654,800 |
| Operating ROA | 17.60% | 18.54% | 17.55% | 15.03% | 13.47% | 12.40% | 10.77% | 11.60% | 11.45% | 9.45% | 8.22% | 4.62% | 2.26% | 2.05% | 3.83% | 7.33% | 10.48% | 12.46% | 11.42% | 11.43% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $636,500K ÷ $3,615,500K
= 17.60%
To analyze Terex Corp.'s operating return on assets (ROA) based on the presented data, we observe a consistent increase in the operating ROA over the quarters in 2023 compared to the corresponding quarters in 2022. The operating ROA has improved from 13.47% in Q4 2022 to 17.60% in Q4 2023, indicating an upward trend in the company's operational efficiency in generating profit relative to its assets.
Throughout 2023, Terex Corp. has shown steady performance in utilizing its assets to generate operating income, with operating ROA ranging from 15.03% to 18.54%. This consistent improvement suggests effective management of assets to generate profits, which is a positive sign for stakeholders.
Comparing the operating ROA with the respective quarters in the prior year, we observe a notable year-on-year growth trend. In Q4 2023, the operating ROA of 17.60% represents a significant increase from 12.40% in Q4 2022, reflecting enhanced operational efficiency and potentially improved profitability.
Overall, Terex Corp.'s increasing operating ROA indicates the company's ability to generate higher operating income relative to its asset base. This trend could be attributed to improved operational performance, cost management, and asset utilization strategies, signaling positive prospects for the company's financial health and potential for creating value for its shareholders.