Trimble Inc (TRMB)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 460,700 | 494,400 | 510,900 | 561,000 | 419,800 |
| Total assets | US$ in thousands | 9,488,300 | 9,539,300 | 7,269,000 | 7,099,600 | 6,876,900 |
| Operating ROA | 4.86% | 5.18% | 7.03% | 7.90% | 6.10% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $460,700K ÷ $9,488,300K
= 4.86%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the efficiency of Trimble Inc in generating operating income relative to its total assets.
The trend in Trimble Inc's Operating ROA from 2020 to 2024 demonstrates fluctuation. In 2020, Trimble Inc achieved an Operating ROA of 6.10%, which increased to 7.90% in 2021, indicating improved operational efficiency. However, in 2022, the Operating ROA declined slightly to 7.03% before showing a more significant decrease to 5.18% in 2023. This suggests a potential decrease in profitability generated from the company's assets.
Furthermore, in 2024, Trimble Inc's Operating ROA declined further to 4.86%, signaling a continued decline in efficiency in generating operating income from its assets. This may be attributed to various factors such as changes in operating expenses, revenue fluctuations, or asset utilization efficiency.
Overall, the trend in Trimble Inc's Operating ROA indicates a mixed performance in terms of asset utilization and operational efficiency over the years. It may be prudent for the company to evaluate its operational strategies and asset management practices to improve its profitability and efficiency going forward.
Peer comparison
Dec 31, 2024