NCR Voyix Corporation (VYX)
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 | 37,000 | 136,000 | 474,000 | 221,000 | 611,000 |
| Total assets | US$ in thousands | 4,990,000 | 11,507,000 | 11,641,000 | 8,414,000 | 8,987,000 |
| Operating ROA | 0.74% | 1.18% | 4.07% | 2.63% | 6.80% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $37,000K ÷ $4,990,000K
= 0.74%
NCR Voyix Corporation's operating return on assets (operating ROA) has exhibited a declining trend over the last five years, as reflected by the data provided. The operating ROA decreased from 6.80% in 2019 to 0.74% in 2023. This reduction indicates a decrease in the company's ability to generate operating profits from its assets.
The highest operating ROA of 4.07% was recorded in 2021, followed by 2.63% in 2020 and 1.18% in 2022. The significant drop in operating ROA from 2021 to 2023 suggests a decrease in the company's efficiency in utilizing its assets to generate operating income.
The declining trend in operating ROA could be attributed to various factors such as inefficient asset utilization, decreasing operational profitability, or changes in the company's operating structure. It is imperative for NCR Voyix Corporation to analyze the underlying reasons for the decreasing operating ROA and implement strategies to improve asset productivity and operational efficiency in order to enhance overall profitability.