Travel + Leisure Co (TNL)
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 | 733,000 | 720,000 | 653,000 | 618,000 | -105,000 |
| Total assets | US$ in thousands | 6,735,000 | 6,738,000 | 6,757,000 | 6,588,000 | 7,613,000 |
| Operating ROA | 10.88% | 10.69% | 9.66% | 9.38% | -1.38% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $733,000K ÷ $6,735,000K
= 10.88%
Operating ROA is a key financial metric that indicates how efficiently a company is generating operating profits from its assets. The trend analysis of Travel + Leisure Co's operating ROA reveals a significant improvement over the years.
As of December 31, 2020, the company had a negative operating ROA of -1.38%, suggesting that the company was not effectively utilizing its assets to generate operating income. However, by December 31, 2021, the operating ROA had improved to 9.38%, indicating a turnaround in the company's asset efficiency.
This positive trend continued into the following years, with operating ROA increasing to 9.66% by December 31, 2022, 10.69% by December 31, 2023, and reaching 10.88% by December 31, 2024. These consistent improvements demonstrate the company's ability to generate higher operating profits relative to its asset base.
Overall, the increasing trend in Travel + Leisure Co's operating ROA reflects improved operational efficiency and asset utilization, which is a positive indicator of the company's financial performance and potential for sustainable growth.
Peer comparison
Dec 31, 2024