Upbound Group Inc. (UPBD)
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 | 291,631 | 162,865 | 148,538 | 280,539 | 237,336 |
| Total assets | US$ in thousands | 2,649,660 | 2,721,430 | 2,763,620 | 2,993,330 | 1,750,980 |
| Operating ROA | 11.01% | 5.98% | 5.37% | 9.37% | 13.55% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $291,631K ÷ $2,649,660K
= 11.01%
The operating return on assets (operating ROA) for Upbound Group Inc. has exhibited fluctuating trends over the past five years. In December 2020, the operating ROA stood at 13.55%, suggesting that the company generated a profit of 13.55 cents for every dollar of assets employed in its operations.
However, by December 2021, the operating ROA decreased to 9.37%, indicating a decline in the company's efficiency in utilizing its assets to generate operating profits. This downward trend continued into December 2022, with the operating ROA further declining to 5.37%.
In December 2023, there was a slight improvement in the operating ROA, which increased to 5.98%, but it still remained relatively low compared to the levels seen in the previous years.
The most recent data point, from December 2024, shows a significant rebound in the operating ROA to 11.01%, indicating a positive shift in the company's asset utilization and operating profitability.
Overall, the fluctuating nature of Upbound Group Inc.'s operating ROA over the five-year period highlights the importance of closely monitoring and analyzing this metric to assess the company's operational performance and efficiency in generating profits from its assets.
Peer comparison
Dec 31, 2024