Werner Enterprises Inc (WERN)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 66,148 90,726 111,031 138,618 176,416 153,678 121,957 149,682 112,780 196,074 261,219 263,159 309,146 292,109 282,888 258,843 227,438 211,641 202,895 208,519
Total assets US$ in thousands 3,052,240 3,121,720 3,093,570 3,078,830 3,157,940 3,194,460 3,105,190 3,116,320 3,097,260 2,859,130 2,848,590 2,649,030 2,589,920 2,479,140 2,382,870 2,229,530 2,156,680 2,140,140 2,079,710 2,088,900
Operating ROA 2.17% 2.91% 3.59% 4.50% 5.59% 4.81% 3.93% 4.80% 3.64% 6.86% 9.17% 9.93% 11.94% 11.78% 11.87% 11.61% 10.55% 9.89% 9.76% 9.98%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $66,148K ÷ $3,052,240K
= 2.17%

Werner Enterprises Inc's operating return on assets (operating ROA) has shown fluctuating trends over the analyzed periods. The metric ranged from a high of 11.94% in December 31, 2021, to a low of 2.17% in December 31, 2024.

In the initial periods, the operating ROA demonstrated a generally increasing pattern, reaching its peak in December 31, 2021. This indicates the company's ability to generate operating income relative to its total assets was improving during this time.

However, a noticeable decline in operating ROA was observed from March 31, 2022, to December 31, 2024, reflecting a decreasing trend in the company's efficiency in generating operating income from its assets. This decline could potentially be a cause for concern as it suggests decreasing profitability relative to the assets employed.

Overall, it is essential for Werner Enterprises Inc to closely monitor its operating ROA in order to assess its operational efficiency and profitability in utilizing its assets effectively. Identifying the factors contributing to the fluctuations in operating ROA would be crucial for the company to address any potential inefficiencies and optimize its asset utilization for sustainable financial performance.