Alcoa Corp (AA)
Return on assets (ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -651,000 | -896,000 | -1,474,000 | -823,000 | -123,000 | -120,000 | 963,000 | 723,000 | 429,000 | 817,000 | 431,000 | -75,000 | -170,000 | -469,000 | -641,000 | -846,000 | -1,125,000 | -771,000 | -556,000 | -144,000 |
| Total assets | US$ in thousands | 14,155,000 | 13,917,000 | 14,128,000 | 14,369,000 | 14,756,000 | 14,885,000 | 15,709,000 | 15,988,000 | 15,025,000 | 14,197,000 | 14,438,000 | 14,931,000 | 14,860,000 | 14,250,000 | 13,300,000 | 13,651,000 | 14,631,000 | 14,670,000 | 15,349,000 | 15,956,000 |
| ROA | -4.60% | -6.44% | -10.43% | -5.73% | -0.83% | -0.81% | 6.13% | 4.52% | 2.86% | 5.75% | 2.99% | -0.50% | -1.14% | -3.29% | -4.82% | -6.20% | -7.69% | -5.26% | -3.62% | -0.90% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $-651,000K ÷ $14,155,000K
= -4.60%
The return on assets (ROA) of Alcoa Corp has shown fluctuations in recent quarters. In Q4 2023, the ROA was -4.60%, deteriorating from the previous quarter's -6.44%. The ROA has been negative for the past two quarters, indicating that the company's net income generated from its assets has been insufficient to cover its total assets.
Comparing to the same quarter of the previous year, Q4 2022, the ROA has decreased significantly from -0.83% to -4.60%, pointing towards a decline in the company's profitability in utilizing its assets efficiently.
In Q2 2022, the company had a notably high ROA of 6.13%, reflecting a period of strong profitability relative to its assets. However, this high ROA was not sustained, as the subsequent quarters showed a decreasing trend.
Overall, the recent negative ROA figures suggest that Alcoa Corp may be facing challenges in generating profits from its assets effectively and should consider strategies to improve its asset utilization and performance.
Peer comparison
Dec 31, 2023