Travel + Leisure Co (TNL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 734,000 | 719,000 | 737,000 | 731,000 | 719,000 | 690,000 | 672,000 | 674,000 | 653,000 | 686,000 | 683,000 | 649,000 | 619,000 | 509,000 | 387,000 | 122,000 | -106,000 | 68,000 | 218,000 | 530,000 |
| Total assets | US$ in thousands | 6,735,000 | 6,698,000 | 6,693,000 | 7,023,000 | 6,738,000 | 6,655,000 | 6,602,000 | 6,477,000 | 6,757,000 | 6,380,000 | 6,477,000 | 6,600,000 | 6,588,000 | 6,601,000 | 6,639,000 | 6,728,000 | 7,613,000 | 7,822,000 | 7,597,000 | 7,776,000 |
| Operating ROA | 10.90% | 10.73% | 11.01% | 10.41% | 10.67% | 10.37% | 10.18% | 10.41% | 9.66% | 10.75% | 10.55% | 9.83% | 9.40% | 7.71% | 5.83% | 1.81% | -1.39% | 0.87% | 2.87% | 6.82% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $734,000K ÷ $6,735,000K
= 10.90%
Operating return on assets (ROA) is a key financial ratio that measures a company's ability to generate earnings from its operational assets. It indicates the efficiency of the company in utilizing its assets to generate operating profits.
For Travel + Leisure Co, the operating ROA has exhibited fluctuations over the past few quarters. From March 31, 2020, where it stood at 6.82%, there was a gradual decline in the ratio until December 31, 2020, where it turned negative (-1.39%), indicating challenges in generating operating profits relative to its assets during that period.
However, from March 31, 2021, the operating ROA started to recover and displayed an increasing trend, reaching its peak at December 31, 2024, with a value of 10.90%. This upward trend suggests that Travel + Leisure Co has been able to improve its operating efficiency and generate higher operating profits relative to its asset base over the quarters.
Overall, the increasing trend in operating ROA indicates that Travel + Leisure Co has been effectively utilizing its assets to drive operating profitability, showcasing a positive sign for the company's operational performance and efficiency over the reviewed period.
Peer comparison
Dec 31, 2024