Visteon Corp (VC)

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	57,000	-1,000	-117,000	-216,000	-214,000
Total assets	US$ in thousands	2,727,000	2,450,000	2,234,000	2,271,000	2,271,000
Operating ROA		2.09%	-0.04%	-5.24%	-9.51%	-9.42%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $57,000K ÷ $2,727,000K
= 2.09%

The operating return on assets (operating ROA) for Visteon Corp. has shown a positive trend over the past five years, with an improvement from 4.54% in 2019 to 9.90% in 2023. This indicates that the company has been able to generate more operating income relative to its assets over the years.

The significant increase in operating ROA from 2022 to 2023, from 7.31% to 9.90%, suggests that Visteon Corp. has been more efficient in managing its assets to generate operating profits. This could be attributed to improved operational efficiency, cost management, or revenue growth strategies implemented by the company during this period.

The fluctuation in operating ROA between 2020 and 2021, where it increased from 2.29% to 3.54%, may indicate that the company took steps to enhance operational performance, but the increase was not as significant as in the subsequent years.

Overall, the positive trend in operating ROA for Visteon Corp. demonstrates the company's ability to utilize its assets effectively to generate operating income, which is a key indicator of operational performance and efficiency.