Williams Companies Inc (WMB)
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 | 4,311,000 | 3,018,000 | 2,631,000 | 2,202,000 | 1,921,000 |
| Total assets | US$ in thousands | 52,627,000 | 48,433,000 | 47,612,000 | 44,165,000 | 46,040,000 |
| Operating ROA | 8.19% | 6.23% | 5.53% | 4.99% | 4.17% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $4,311,000K ÷ $52,627,000K
= 8.19%
Operating ROA measures the efficiency with which Williams Cos Inc generates operating profits from its total assets. The trend analysis of the operating ROA over the past five years shows a generally positive trajectory, reflecting an improvement in the company's operational efficiency and profitability.
In 2023, Williams Cos Inc achieved an operating ROA of 7.89%, representing an increase from the previous year's 6.29%. This improvement indicates that the company was able to generate a higher operating profit relative to its total assets in 2023.
Comparing the latest operating ROA to the 2021 and 2020 figures, we observe a consistent growth trend over the past three years. This suggests that Williams Cos Inc has been able to enhance its operational performance and asset utilization efficiency over this period.
Despite the fluctuations in operating ROA between 2019 and 2023, the overall trend demonstrates a positive outlook for the company's profitability and operational effectiveness. This upward trajectory indicates that Williams Cos Inc has been able to generate increasing operating profits per dollar of assets employed, which may reflect effective management of resources and operational improvements within the organization.
Peer comparison
Dec 31, 2023