Tractor Supply Company (TSCO)
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 | 1,467,530 | 1,478,910 | 1,434,940 | 1,306,700 | 996,928 |
| Total assets | US$ in thousands | 9,805,480 | 9,188,150 | 8,489,990 | 7,767,470 | 7,049,120 |
| Operating ROA | 14.97% | 16.10% | 16.90% | 16.82% | 14.14% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,467,530K ÷ $9,805,480K
= 14.97%
Tractor Supply Company's operating return on assets (ROA) has shown a positive trend over the past five years. The operating ROA increased from 14.14% in December 2020 to 16.90% in December 2022, indicating an improvement in the company's ability to generate operating income from its assets. However, there was a slight decrease to 14.97% by December 2024.
Overall, the company has been effectively utilizing its assets to generate operating income, with operating ROA consistently above 14% during the period. This suggests efficient asset management and operational performance, but the slight dip in 2024 may warrant further investigation to understand the factors contributing to the decrease in the ratio.
Peer comparison
Dec 31, 2024