Adient PLC (ADNT)

Return on assets (ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	205,000	-120,000	1,108,000	-547,000	-491,000
Total assets	US$ in thousands	9,424,000	9,158,000	10,778,000	10,261,000	10,342,000
ROA		2.18%	-1.31%	10.28%	-5.33%	-4.75%

September 30, 2023 calculation

ROA = Net income ÷ Total assets
= $205,000K ÷ $9,424,000K
= 2.18%

To analyze Adient plc's return on assets (ROA), we compare the ROA figures over the past five years. ROA is a measure of a company's ability to generate profit from its assets.

In 2023, Adient plc's ROA stood at 2.18%, indicating that for every dollar of assets, the company generated a profit of 2.18 cents. This represents an improvement from the negative ROA of -1.31% in 2022, which suggests that the company's profitability relative to its assets has strengthened.

The significant change in ROA from 2022 to 2023 highlights the company's ability to effectively utilize its assets to generate profit. It is important to note that the 2022 ROA figure was negative, indicating that the company's assets were not efficiently used to generate profits during that period.

Looking further back, in 2021, Adient plc achieved a robust ROA of 10.28%, demonstrating a strong ability to generate profits from its assets. However, in 2020 and 2019, the ROA figures were negative, indicating that the company faced challenges in generating profits relative to its asset base during those years.

Overall, Adient plc's ROA has shown fluctuations over the past five years, with both positive and negative figures. This reflects the company's varying ability to utilize its assets effectively to generate profits. The recent positive ROA in 2023 suggests an improvement in the company's overall profitability relative to its asset base, signaling a positive trend in asset efficiency and profitability.