Waters Corporation (WAT)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	817,676	839,736	852,320	852,093	873,395	849,312	849,117	845,907	821,707	823,218	789,787	748,479	645,489	618,195	633,046	655,586	708,457	716,572	715,011	716,550
Total assets	US$ in thousands	4,626,850	4,497,180	4,548,200	3,306,820	3,281,450	3,070,050	3,040,570	3,041,270	3,094,930	3,115,920	3,103,650	3,211,560	2,839,920	2,679,290	2,648,300	2,666,520	2,557,060	2,561,260	2,822,920	3,249,730
Operating ROA		17.67%	18.67%	18.74%	25.77%	26.62%	27.66%	27.93%	27.81%	26.55%	26.42%	25.45%	23.31%	22.73%	23.07%	23.90%	24.59%	27.71%	27.98%	25.33%	22.05%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $817,676K ÷ $4,626,850K
= 17.67%

Waters Corp.'s operating return on assets (operating ROA) has shown a decreasing trend over the past eight quarters. Starting at a strong level of 28.31% in Q1 2022, the operating ROA gradually declined to 17.67% in Q4 2023. This indicates a reduction in the company's ability to generate operating profits from its assets over time.

While the operating ROA fluctuated slightly quarter by quarter, it generally followed a downward trajectory. The decrease in operating ROA could be attributed to a variety of factors such as increased operating expenses, declining sales revenues, or inefficient asset utilization.

It is essential for Waters Corp. to closely monitor and address the factors contributing to the decline in operating ROA to enhance operational efficiency and profitability in the future. Investors and stakeholders may closely watch for any turnaround efforts or strategies implemented by the company to improve its operating ROA performance.