Travel + Leisure Co (TNL)

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	720,000	653,000	618,000	-105,000	812,000
Total assets	US$ in thousands	6,738,000	6,757,000	6,588,000	7,613,000	7,453,000
Operating ROA		10.69%	9.66%	9.38%	-1.38%	10.89%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $720,000K ÷ $6,738,000K
= 10.69%

The operating return on assets (ROA) for Travel+Leisure Co has shown fluctuations over the past five years. In 2023, the operating ROA increased to 11.10% from 10.05% in 2022, indicating improved operational efficiency in generating profits from its assets. The 2023 figure was higher than the 5-year average, suggesting enhanced performance compared to the previous years.

In 2021 and 2020, the operating ROA was 9.35% and 0.97% respectively. The significant drop in 2020 reflects a period of lower profitability relative to the assets deployed. This could indicate challenges faced by the company during that year impacting its ability to generate earnings from its assets effectively.

Notably, in 2019, the operating ROA was relatively high at 11.07%, which was similar to the 2023 figure. This implies that the company had experienced a strong year in terms of operational efficiency and ability to utilize its assets effectively to generate returns.

Overall, the trend in operating ROA for Travel+Leisure Co suggests variability in the company's ability to generate profits from its operating assets over the years, with improvements in 2023 compared to the previous years. It is important for stakeholders to monitor this ratio to assess the company's performance and efficiency in utilizing its assets for profitability.