Vontier Corp (VNT)
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 | 537,000 | 543,400 | 577,900 | 582,200 | 468,200 |
| Total assets | US$ in thousands | 4,310,500 | 4,294,000 | 4,343,300 | 4,349,800 | 3,073,000 |
| Operating ROA | 12.46% | 12.65% | 13.31% | 13.38% | 15.24% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $537,000K ÷ $4,310,500K
= 12.46%
The operating return on assets (operating ROA) of Vontier Corp has shown a gradual decline over the past five years. Starting at 15.24% on December 31, 2020, it decreased to 13.38% by December 31, 2021, and continued to decline further to 13.31% by December 31, 2022. Subsequently, the operating ROA dropped to 12.65% by December 31, 2023, and further decreased to 12.46% by December 31, 2024.
This decline in operating ROA indicates that Vontier Corp is generating lower operating income relative to its total assets over the years. It suggests that the company may be facing challenges in efficiently utilizing its assets to generate operating profits or experiencing declining profitability from its core operations. Further analysis and investigation into the company's operational efficiency and profitability drivers may be necessary to address this downward trend in operating ROA.
Peer comparison
Dec 31, 2024