Agilent Technologies Inc (A)
Return on assets (ROA)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,240,000 | 1,254,000 | 1,210,000 | 719,000 | 1,071,000 |
| Total assets | US$ in thousands | 10,763,000 | 10,532,000 | 10,705,000 | 9,627,000 | 9,452,000 |
| ROA | 11.52% | 11.91% | 11.30% | 7.47% | 11.33% |
October 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,240,000K ÷ $10,763,000K
= 11.52%
Agilent Technologies Inc.'s return on assets (ROA) measures the company's efficiency in generating profits from its assets.
The data shows that Agilent's ROA has fluctuated over the past five years. In 2019, the ROA stood at 11.33%, and it remained relatively stable in 2020 at 7.47%. However, there was a notable increase in 2021, with the ROA reaching 11.30%. This was followed by a further improvement in 2022, peaking at 11.91%. In 2023, the ROA slightly decreased to 11.52%.
The increasing trend from 2020 to 2022 reflects the company's effective utilization of assets to generate higher profits. However, the slight dip in 2023, compared to the previous year, could indicate a potential decrease in efficiency in generating earnings from its assets.
Overall, Agilent's ROA indicates that the company has been consistently able to generate strong returns from its assets. However, it will be important to monitor future periods to assess whether the slight dip in 2023 is indicative of a longer-term trend or simply a temporary fluctuation.
Peer comparison
Oct 31, 2023