Taylor Morn Home (TMHC)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	1,133,740	1,084,370	1,392,410	859,099	467,497
Total assets	US$ in thousands	9,297,130	8,672,090	8,470,720	8,727,780	7,738,000
Operating ROA		12.19%	12.50%	16.44%	9.84%	6.04%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,133,740K ÷ $9,297,130K
= 12.19%

Taylor Morn Home's operating return on assets (operating ROA) has shown a positive trend over the past five years. The operating ROA increased from 6.04% as of December 31, 2020, to 9.84% as of December 31, 2021, indicating a significant improvement in the company's ability to generate operating income relative to its assets.

Subsequently, there was a substantial surge in operating ROA to 16.44% as of December 31, 2022, suggesting a notable increase in operational efficiency and profitability. However, in the following years, the operating ROA experienced some fluctuations, declining to 12.50% as of December 31, 2023, and further decreasing to 12.19% as of December 31, 2024.

Overall, the fluctuation in operating ROA in the latter years may indicate changing market conditions or internal operational challenges that impacted the company's ability to generate operating income from its assets effectively. Further analysis of the underlying factors affecting the operating ROA in these periods would be necessary to understand the reasons behind these fluctuations and to assess the company's overall financial performance.