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Operating Return on Assets

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Operating Return on Assets
OPERATING RETURN ON ASSETS (OROA) Year | 2007 | 2008 | 2009 | 2010 | 2011 | Public Bank Berhad | 1.96% | 2.01% | 1.84% | 2.09% | 2.08% | RHB Bank Berhad | 1.89% | 2.09% | 1.93% | 1.98% | 1.70% |

Operating return on assets (OROA) ratio is measure of the return earn by a firm operations divided by total assets. The operating return on assets indicates how much will return earned by a firm operation for every RM1 of the total assets.
Public Bank Berhad generated RM0.0196 of operating profit for every RM1 of its invested assets in year 2007. That’s better than the RHB Bank Berhad, which generated an average RM0.0189 for every RM1 of their assets. Public Bank Berhad has operating return on assets (OROA) is higher than the average for the RHB Bank Berhad. This is because managers of Public Bank Berhad have done a good job of controlling costs and generating sales. This means that Public Bank earned more net operating per ringgit of investment in assets than the RHB Bank.
In year 2008, Public Bank Berhad generated RM0.0201 of the operating profits for every RM1 of its invested assets. That’s worse than the RHB Bank Berhad, which generated an average RM0.0209 for every RM1 of their assets. Public Bank Berhad has operating return on assets (OROA) is lowest than the average for the RHB Bank. Public Bank Berhad’s managers have done not good job of controlling costs and generating sales compared to RHB Bank Berhad. This means that Public Bank earned less of the net operating income per ringgit of investment in assets than the RHB Bank Berhad.
In year 2009, once again Public Bank Berhad generated less of OROA compared to RHB Bank Berhad. Public Bank generated RM0.0184 of the operating profits for every RM1 of its invested assets. That’s worse than the RHB Bank Berhad, which generated an average RM0.0193 for every RM1 of their assets. Public Bank Berhad’s managers have done not good job of controlling costs and generating sales compared to RHB Bank Berhad. This means

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