Tootsie Roll Industries Inc (TR)
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 | 101,828 | 110,755 | 67,133 | 58,244 | 69,214 |
| Total assets | US$ in thousands | 1,084,390 | 1,018,780 | 1,018,620 | 984,558 | 977,864 |
| Operating ROA | 9.39% | 10.87% | 6.59% | 5.92% | 7.08% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $101,828K ÷ $1,084,390K
= 9.39%
Tootsie Roll Industries, Inc.'s operating return on assets (operating ROA) has fluctuated over the past five years, ranging from 5.92% in 2020 to a high of 10.87% in 2022. The trend indicates that the company's ability to generate operating income from its assets improved significantly in 2022 but slightly declined in 2023. Overall, the average operating ROA for the period was 7.37%.
A higher operating ROA signifies better operational efficiency, as the company is generating more operating income for each dollar of assets employed. In contrast, a lower operating ROA could indicate challenges in effectively utilizing assets to generate profits. Tootsie Roll Industries should continue monitoring its operating ROA to ensure efficient asset management and sustainable profitability.
Peer comparison
Dec 31, 2023