Tempur Sealy International Inc (TPX)
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 | 607,200 | 680,600 | 912,300 | 532,100 | 346,700 |
| Total assets | US$ in thousands | 4,553,900 | 4,359,800 | 4,323,400 | 3,308,600 | 3,061,800 |
| Operating ROA | 13.33% | 15.61% | 21.10% | 16.08% | 11.32% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $607,200K ÷ $4,553,900K
= 13.33%
The operating return on assets (operating ROA) of Tempur Sealy International Inc has fluctuated over the past five years. In 2021, the operating ROA was at its highest point of 20.39%, indicating that the company generated $0.2039 in operating income for every dollar of assets invested. This high operating efficiency suggests strong operational performance and effective asset utilization.
However, in 2023, the operating ROA decreased to 12.83%, the lowest level in the period under review. This decline may be attributed to various factors such as increased operating expenses, lower operating income, or changes in asset structure. Despite the decrease, the company still managed to generate a reasonable return on its assets.
Overall, the trend in operating ROA for Tempur Sealy International Inc shows some variability, but the company has generally demonstrated its ability to generate solid returns on its assets over the years, reflecting efficient management of its operations and assets.
Peer comparison
Dec 31, 2023