Vontier Corp (VNT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Operating income | US$ in thousands | 543,400 | 577,900 | 582,200 | 468,200 |
| Total assets | US$ in thousands | 4,294,000 | 4,343,300 | 4,349,800 | 3,073,000 |
| Operating ROA | 12.65% | 13.31% | 13.38% | 15.24% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $543,400K ÷ $4,294,000K
= 12.65%
Vontier Corporation's operating return on assets (operating ROA) has shown a declining trend over the past five years. In 2019 and 2020, the company's operating ROA was notably high at 19.91% and 18.01%, respectively, indicating strong efficiency in generating operating income from its assets. However, in 2021, 2022, and 2023, the operating ROA decreased to 13.38%, 13.31%, and 12.65%, respectively.
This decline suggests that Vontier Corporation may be facing challenges in effectively utilizing its assets to generate operating income. It could be attributed to various factors such as increasing costs, lower sales revenue, or inefficiencies in operations. The decreasing trend in operating ROA warrants further investigation to identify the root causes and implement strategies to improve operational performance and asset utilization in the future.
Peer comparison
Dec 31, 2023