Viad Corp (VVI)

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	108,443	68,944	-47,002	-116,240	79,445
Total assets	US$ in thousands	1,137,320	1,090,350	1,037,630	853,224	1,318,690
Operating ROA		9.53%	6.32%	-4.53%	-13.62%	6.02%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $108,443K ÷ $1,137,320K
= 9.53%

Viad Corp.'s operating return on assets (operating ROA) has shown varying trends over the past five years. In 2023, the operating ROA increased to 8.31%, indicating that the company generated $0.0831 in operating income for every $1 of assets employed in its operations. This improvement from the previous year's 5.10% suggests that Viad Corp. was more efficient in utilizing its assets to generate operating profits.

However, the operating ROA was negative in 2021 and 2020, at -5.65% and -14.63%, respectively. These negative figures imply that the company's operating income was insufficient to cover the costs associated with its assets during those years, indicating operational inefficiencies or financial challenges.

The return to a positive operating ROA of 6.01% in 2019 suggests a recovery or improvement in Viad Corp.'s operational performance compared to the previous years. Overall, the trend in operating ROA indicates fluctuations in the company's ability to generate operating profits relative to its asset base, highlighting the importance of closely monitoring operational efficiency and asset utilization in assessing Viad Corp.'s financial performance.