Dentsply Sirona Inc (XRAY)
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 | -85,000 | -937,000 | 622,000 | -3,000 | 361,000 |
| Total assets | US$ in thousands | 7,370,000 | 7,643,000 | 9,239,000 | 9,342,000 | 8,603,000 |
| Operating ROA | -1.15% | -12.26% | 6.73% | -0.03% | 4.20% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-85,000K ÷ $7,370,000K
= -1.15%
The operating return on assets (operating ROA) of DENTSPLY Sirona Inc has shown variability over the past five years. In 2023, the operating ROA decreased to 3.87% from 4.29% in 2022. This decline suggests that the company's ability to generate earnings from its operations relative to its assets decreased during the year.
Comparing the operating ROA of 3.87% in 2023 to the peak of 6.76% in 2021, there was a significant drop in profitability efficiency over the two-year period. This could indicate challenges or changes within the company's operations impacting its profitability metrics.
Although the operating ROA in 2023 was lower than in previous years, it was notably higher than the level in 2020 (2.38%). This positive trend from 2020 to 2021 followed by a decline in 2023 may suggest that the company experienced fluctuations in its operating performance and asset utilization efficiency during this period.
Overall, the varying trend in operating ROA over the past five years indicates the importance of monitoring the company's operational efficiency and asset management to ensure sustainable profitability in the long term.
Peer comparison
Dec 31, 2023