Trimble Inc (TRMB)
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 | 448,800 | 510,900 | 561,000 | 419,800 | 375,900 |
| Total assets | US$ in thousands | 9,539,300 | 7,269,000 | 7,099,600 | 6,876,900 | 6,640,700 |
| Operating ROA | 4.70% | 7.03% | 7.90% | 6.10% | 5.66% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $448,800K ÷ $9,539,300K
= 4.70%
Operating ROA is a key financial metric that measures a company's efficiency in generating operating income relative to its total assets. Trimble Inc's operating ROA has exhibited fluctuations over the past five years, with values ranging from 4.70% in 2023 to 7.90% in 2021.
The declining trend in operating ROA from 2021 to 2023 indicates a decrease in the company's ability to generate operating income from its assets during these years. This could be attributed to factors such as decreased operational efficiency, increased operating expenses, or lower revenue generation relative to total assets.
Although the operating ROA saw a decrease in 2023, it is essential to evaluate the company's performance over a longer period to assess its overall financial health and operational efficiency. Further analysis of Trimble Inc's financial statements and performance indicators would be necessary to identify the underlying reasons for the variations in operating ROA and to formulate appropriate strategies for improvement.
Peer comparison
Dec 31, 2023