Tempur Sealy International Inc (TPX)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 607,200 | 632,400 | 650,200 | 635,300 | 680,600 | 784,300 | 833,100 | 912,500 | 912,300 | 854,700 | 785,100 | 615,200 | 532,100 | 423,500 | 363,900 | 391,500 | 346,700 | 320,000 | 284,100 | 261,100 |
| Total assets | US$ in thousands | 4,553,900 | 4,546,100 | 4,570,800 | 4,537,100 | 4,359,800 | 4,351,700 | 4,404,400 | 4,321,900 | 4,323,400 | 4,467,300 | 3,277,600 | 3,542,100 | 3,308,600 | 3,455,400 | 3,201,900 | 3,306,200 | 3,061,800 | 3,103,100 | 3,046,700 | 2,965,700 |
| Operating ROA | 13.33% | 13.91% | 14.23% | 14.00% | 15.61% | 18.02% | 18.92% | 21.11% | 21.10% | 19.13% | 23.95% | 17.37% | 16.08% | 12.26% | 11.37% | 11.84% | 11.32% | 10.31% | 9.32% | 8.80% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $607,200K ÷ $4,553,900K
= 13.33%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operating activities relative to its total assets. Tempur Sealy International Inc's Operating ROA has shown a decreasing trend over the past eight quarters. In Q4 2022, the Operating ROA was at its peak at 20.40%, indicating that the company was efficiently utilizing its assets to generate operating income. However, since then, the ratio has been on a declining trend, reaching 12.83% in Q4 2023.
This decline in Operating ROA suggests that Tempur Sealy International Inc may be experiencing challenges in maintaining profitability from its core operations relative to its asset base. It is important for the company to closely monitor and improve its operational efficiency and profitability to enhance its ability to generate returns from its assets.
Further analysis and comparison with industry peers and historical performance can provide additional insights into the factors contributing to the fluctuations in Tempur Sealy International Inc's Operating ROA and help identify areas for improvement to enhance overall financial performance.
Peer comparison
Dec 31, 2023