Wabash National Corporation (WNC)
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 | 311,949 | 166,642 | 33,542 | -85,608 | 142,786 |
| Total assets | US$ in thousands | 1,362,810 | 1,203,520 | 1,107,070 | 1,161,470 | 1,304,590 |
| Operating ROA | 22.89% | 13.85% | 3.03% | -7.37% | 10.94% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $311,949K ÷ $1,362,810K
= 22.89%
The operating return on assets (operating ROA) for Wabash National Corp. has demonstrated fluctuating performance over the past five years. In 2023, the operating ROA improved significantly to 22.85%, indicating that the company generated $0.2285 in operating income for every $1 of assets employed in its operations. This sharp increase from the prior year's 13.90% suggests an enhanced efficiency in utilizing assets to generate operating profits.
The trend over the period indicates that in 2022, the operating ROA was 13.90%, showing a positive performance compared to the prior year but still lower than the latest figure. In 2021, the operating ROA was relatively lower at 5.52%, indicating a decrease in asset efficiency compared to the previous year. However, the company significantly improved its performance in 2020, with an operating ROA of 1.72%, and in 2019, achieving an operating ROA of 10.94%.
Overall, the recent surge in operating ROA suggests improved operational efficiency and profitability for Wabash National Corp. It is essential for the company to sustain and further enhance this trend to maximize returns on its asset base and drive long-term financial success.