WESCO International Inc (WCC)
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 | 1,406,400 | 1,438,100 | 801,873 | 347,038 | 346,217 |
| Total assets | US$ in thousands | 15,060,900 | 14,811,700 | 12,617,700 | 11,880,200 | 5,017,640 |
| Operating ROA | 9.34% | 9.71% | 6.36% | 2.92% | 6.90% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,406,400K ÷ $15,060,900K
= 9.34%
Operating return on assets (operating ROA) measures a company's ability to generate operating income from its assets. Wesco International, Inc.'s operating ROA has shown varying trends over the last five years. In 2023, the operating ROA was 9.34%, a slight decrease from 9.71% in 2022. Despite this decline, Wesco's operating ROA remains relatively strong compared to previous years.
The company's operating ROA experienced a significant improvement from 6.36% in 2021 to 9.71% in 2022, indicating enhanced operational efficiency and profitability. Prior to 2021, Wesco's operating ROA showed fluctuations with a notable increase from 2.92% in 2020 to 6.36% in 2021. In 2019, the operating ROA was 6.90%, slightly lower than 2022 and 2023 figures.
Overall, Wesco International, Inc.'s operating ROA has demonstrated a positive trend in recent years, with occasional fluctuations. The company's ability to maintain a higher operating ROA indicates effective management of assets to generate operating income and create value for shareholders. Continuing to focus on optimizing asset utilization and profitability will be crucial for sustaining or further improving its operating ROA in the future.
Peer comparison
Dec 31, 2023