Xcel Energy Inc (XEL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,386,000 | 2,481,000 | 2,428,000 | 2,203,000 | 2,116,000 |
| Total assets | US$ in thousands | 70,035,000 | 64,079,000 | 61,188,000 | 57,851,000 | 53,957,000 |
| Operating ROA | 3.41% | 3.87% | 3.97% | 3.81% | 3.92% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,386,000K ÷ $70,035,000K
= 3.41%
Analyzing the operating return on assets (Operating ROA) of Xcel Energy Inc over the period from December 31, 2020, to December 31, 2024, reveals fluctuating performance.
The Operating ROA decreased from 3.92% as of December 31, 2020, to 3.81% by December 31, 2021, suggesting a slight decline in the company's ability to generate operating income from its assets during that period.
However, there was a slight recovery as the Operating ROA increased to 3.97% by December 31, 2022, indicating an improvement in operational efficiency and asset utilization.
Subsequently, the Operating ROA declined to 3.87% as of December 31, 2023, showcasing a decrease in the company's profitability relative to its asset base.
The trend continued downwards with the Operating ROA dropping to 3.41% by December 31, 2024, suggesting a further decrease in the company's operating profitability relative to its asset investments.
Overall, the fluctuating Operating ROA indicates varying levels of operational efficiency and asset utilization by Xcel Energy Inc during the period under review. It is essential for the company to closely monitor and improve its performance to enhance profitability and generate higher returns from its assets in the future.
Peer comparison
Dec 31, 2024