Westinghouse Air Brake Technologies Corp (WAB)
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 | 1,266,000 | 1,011,000 | 876,000 | 745,000 | 663,000 |
| Total assets | US$ in thousands | 18,988,000 | 18,516,000 | 18,454,000 | 18,454,000 | 18,944,200 |
| Operating ROA | 6.67% | 5.46% | 4.75% | 4.04% | 3.50% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,266,000K ÷ $18,988,000K
= 6.67%
Westinghouse Air Brake Technologies Corp has demonstrated a consistent improvement in its operating return on assets (ROA) over the past five years. The operating ROA has increased steadily from 3.50% in 2019 to 6.67% in 2023. This indicates that the company has been more effective in generating operating profits from its assets over time.
A rising trend in operating ROA suggests that the company has been efficient in utilizing its assets to generate operating income. This could be attributed to various factors such as improved operational efficiency, cost management, or revenue enhancement strategies.
The company's ability to steadily increase its operating ROA reflects positively on its operational performance and management's ability to drive profitability through asset utilization. It indicates that Westinghouse Air Brake Technologies Corp has been able to achieve higher operating profits relative to its asset base, which is a key metric for investors and stakeholders assessing the company's operational efficiency and overall financial health.
Peer comparison
Dec 31, 2023