Taylor Morn Home (TMHC)
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 | 1,084,370 | 1,392,410 | 859,099 | 467,497 | 312,680 |
| Total assets | US$ in thousands | 8,672,090 | 8,470,720 | 8,727,780 | 7,738,000 | 5,245,690 |
| Operating ROA | 12.50% | 16.44% | 9.84% | 6.04% | 5.96% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,084,370K ÷ $8,672,090K
= 12.50%
The operating return on assets (ROA) for Taylor Morrison Home Corp. has exhibited fluctuations over the past five years. The company's operating ROA was 12.50% in 2023, 16.94% in 2022, 10.08% in 2021, 6.10% in 2020, and 6.36% in 2019.
A higher operating ROA indicates that the company is generating more operating income relative to its assets, reflecting operational efficiency. The decreasing trend from 2019 to 2020 may suggest challenges or inefficiencies faced by the company during that period. However, the notable increase in operating ROA in 2022 followed by a slight decline in 2023 indicates improvements in operational performance and asset utilization.
Overall, Taylor Morrison Home Corp.'s operating ROA has shown variability over the years, with recent improvements in 2022 and a slight decline in 2023. Monitoring this ratio can provide insights into the company's operational effectiveness and efficiency in generating profits from its assets.
Peer comparison
Dec 31, 2023