Whirlpool Corporation (WHR)
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 | 1,015,000 | -1,056,000 | 2,348,000 | 1,615,000 | 1,549,000 |
| Total assets | US$ in thousands | 17,312,000 | 17,124,000 | 20,285,000 | 20,436,000 | 18,973,000 |
| Operating ROA | 5.86% | -6.17% | 11.58% | 7.90% | 8.16% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,015,000K ÷ $17,312,000K
= 5.86%
Operating return on assets (ROA) measures how efficiently a company generates operating profits from its total assets. For Whirlpool Corp., the operating ROA has been fluctuating over the past five years. In 2023, the operating ROA decreased to 6.57% from 7.11% in 2022, indicating a decline in the company's ability to generate operating profits relative to its assets. This may signal potential challenges in effectively utilizing its assets to generate profits.
Comparing to 2021 when the operating ROA was at a higher level of 11.24%, the decrease in 2023 suggests a significant drop in profitability efficiency. However, it is important to note that the operating ROA for 2023 is still higher than the levels seen in 2019 and 2020, which were at 7.00% and 9.39%, respectively.
Overall, the trend in Whirlpool Corp.'s operating ROA implies the need for the company to focus on improving its asset utilization and operational efficiency to enhance profitability. Further analysis of the company's operating performance and asset management practices may provide insights into the factors influencing these fluctuations in operating ROA.
Peer comparison
Dec 31, 2023