Veralto Corporation (VLTO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,208,000 | 1,186,000 | 1,151,000 |
| Total assets | US$ in thousands | 6,406,000 | 6,263,000 | 5,903,000 |
| Operating ROA | 18.86% | 18.94% | 19.50% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,208,000K ÷ $6,406,000K
= 18.86%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. Veralto Corporation has demonstrated a consistent performance in this aspect based on the provided data.
As of June 30, 2024, the operating ROA stood at 19.50%, indicating that for every dollar of assets the company employs in its operations, it generated a profit of $0.195. This suggests effective asset utilization and operational efficiency, leading to a favorable return for investors.
Subsequently, by September 30, 2024, the operating ROA slightly decreased to 18.94%, reflecting a marginal dip in profitability from assets compared to the previous quarter. However, the ratio remained robust, indicating that Veralto continued to generate healthy returns relative to its asset base.
Closing the year on a strong note, the operating ROA as of December 31, 2024, was 18.86%, indicating a sustained performance in converting assets into operating income. The figure, although slightly lower than the initial ratio in June, still showcases Veralto's ability to efficiently utilize its assets to drive profitability.
Overall, the trend in Veralto Corporation's operating ROA suggests a stable and solid performance in leveraging its assets to generate operating profits throughout the year 2024. This consistency indicates effective management of operational resources and a solid foundation for sustainable financial growth.
Peer comparison
Dec 31, 2024