Waters Corporation (WAT)
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 | 817,676 | 873,395 | 821,707 | 645,489 | 708,457 |
| Total assets | US$ in thousands | 4,626,850 | 3,281,450 | 3,094,930 | 2,839,920 | 2,557,060 |
| Operating ROA | 17.67% | 26.62% | 26.55% | 22.73% | 27.71% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $817,676K ÷ $4,626,850K
= 17.67%
The operating return on assets (operating ROA) for Waters Corp. has exhibited fluctuations over the past five years. In 2023, the operating ROA decreased to 17.67% from 26.91% in 2022, indicating a reduction in the company's ability to generate operating income relative to its total assets. Despite the decline, the 2023 operating ROA remains above the 2020 and 2021 levels. The highest operating ROA was observed in 2019 at 27.71%.
The downward trend in the operating ROA from 2022 to 2023 suggests potential challenges in effectively utilizing the company's assets to generate operating profits during the most recent fiscal year. Further analysis is needed to determine the specific factors contributing to this decline and to assess the company's operational efficiency and profitability performance.
Peer comparison
Dec 31, 2023