TRI Pointe Homes Inc (TPH)

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	3,617,610	746,516	605,040	366,506	253,859
Total assets	US$ in thousands	4,914,590	4,719,940	4,336,220	4,021,980	3,858,690
Operating ROA		73.61%	15.82%	13.95%	9.11%	6.58%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $3,617,610K ÷ $4,914,590K
= 73.61%

Tri Pointe Homes Inc.'s operating return on assets (operating ROA) has displayed variable performance over the past five years. The trend indicates an improvement from 2019 to 2022, with a significant increase from 6.61% in 2019 to 16.33% in 2022. However, there was a decrease in 2023 to 8.71%, which is still above the levels seen in 2020 and 2021. This suggests that the company's ability to generate operating income from its assets has fluctuated, with recent performance showing a decline from the peak in 2022. Further analysis and consideration of the company's operational efficiency and asset management practices would be necessary to fully understand the factors driving these fluctuations in operating ROA.