Alcoa Corp (AA)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -651,000 | -123,000 | 429,000 | -170,000 | -1,125,000 |
| Total assets | US$ in thousands | 14,155,000 | 14,756,000 | 15,025,000 | 14,860,000 | 14,631,000 |
| ROA | -4.60% | -0.83% | 2.86% | -1.14% | -7.69% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-651,000K ÷ $14,155,000K
= -4.60%
The return on assets (ROA) for Alcoa Corp has shown variability over the past five years. In 2023, the ROA decreased significantly to -4.60%, indicating a lower profitability relative to the company's assets. This decline from the previous year's -0.83% suggests a deteriorating performance in utilizing its assets to generate earnings.
The ROA of 2.86% in 2021 reflected a positive trend, indicating an improvement in profitability compared to the prior two years. However, this positive momentum reversed in 2020 with an ROA of -1.14%, indicating a decrease in asset efficiency and profitability.
The lowest ROA in the table was in 2019 at -7.69%, signifying a significant underperformance in generating earnings relative to its assets. Overall, the inconsistent performance of Alcoa Corp's ROA over the past five years reflects challenges in effectively leveraging its assets to generate profits, highlighting potential areas for improvement in operational efficiency and profitability.
Peer comparison
Dec 31, 2023