WESCO International Inc (WCC)
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 | 1,406,400 | 1,472,485 | 1,493,585 | 1,500,485 | 1,438,085 | 1,276,584 | 1,104,450 | 952,622 | 801,873 | 674,352 | 622,981 | 419,379 | 347,041 | 338,086 | 253,724 | 336,404 | 346,217 | 352,908 | 356,692 | 349,925 |
| Total assets | US$ in thousands | 15,060,900 | 15,168,600 | 15,162,700 | 14,971,200 | 14,811,700 | 14,080,600 | 13,863,300 | 13,185,000 | 12,617,700 | 12,481,000 | 12,299,100 | 11,878,300 | 11,880,200 | 11,868,300 | 11,732,000 | 5,230,960 | 5,017,640 | 5,047,410 | 5,067,940 | 4,984,640 |
| Operating ROA | 9.34% | 9.71% | 9.85% | 10.02% | 9.71% | 9.07% | 7.97% | 7.23% | 6.36% | 5.40% | 5.07% | 3.53% | 2.92% | 2.85% | 2.16% | 6.43% | 6.90% | 6.99% | 7.04% | 7.02% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,406,400K ÷ $15,060,900K
= 9.34%
Operating ROA measures a company's ability to generate profits from its operating activities relative to its total assets. In the case of Wesco International, Inc., the operating ROA has shown a generally positive trend over the past eight quarters, with values ranging from 7.23% to 10.02%.
The company's operating ROA reached its highest point in Q1 2023 at 10.02%, indicating that Wesco International was able to efficiently utilize its assets to generate operating income during that period. This could be attributed to strong operational performance and effective asset management strategies.
Although there was a slight decrease in operating ROA in the following quarters, the values remained above 9%, suggesting that Wesco International continued to perform well in terms of generating operating profits in relation to its asset base.
Overall, the trend in Wesco International's operating ROA reflects a consistent ability to generate earnings from its core business activities relative to the assets employed. Investors and stakeholders may view this positively as it indicates the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2023