Adient PLC (ADNT)

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	213,000	205,000	115,000	12,000	-54,000	-120,000	795,000	754,000	904,000	1,108,000	112,000	-142,000	-230,000	-547,000	-515,000	-511,000	-641,000	-491,000	-1,842,000	-1,467,000
Total assets	US$ in thousands	9,297,000	9,424,000	9,482,000	9,479,000	9,273,000	9,158,000	9,315,000	9,854,000	10,719,000	10,778,000	9,804,000	9,975,000	10,544,000	10,261,000	9,619,000	10,646,000	10,364,000	10,342,000	10,574,000	10,574,000
ROA		2.29%	2.18%	1.21%	0.13%	-0.58%	-1.31%	8.53%	7.65%	8.43%	10.28%	1.14%	-1.42%	-2.18%	-5.33%	-5.35%	-4.80%	-6.18%	-4.75%	-17.42%	-13.87%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $213,000K ÷ $9,297,000K
= 2.29%

The return on assets (ROA) of Adient plc has shown fluctuations over the past eight quarters. In the most recent quarter, Q1 2024, the ROA increased to 2.29%, which is a positive sign indicating the company's ability to generate profits relative to its total assets. This improvement follows a positive trend from the previous quarter, Q4 2023, where the ROA was 2.18%.

However, looking further back, the ROA in Q3 2023 was 1.21%, showing a decrease compared to the more recent quarters. The company experienced a significant decline in Q2 2023, with an ROA of only 0.13%, which may raise some concerns about the company's asset utilization and profitability during that period.

The ROA had been negative in the two preceding quarters, Q1 2023 and Q4 2022, indicating that the company's profits were insufficient to cover its assets during those periods. However, the ROA showed significant improvement in Q3 and Q2 2022, with values of 8.53% and 7.65%, respectively, indicating strong profitability relative to its assets during those quarters.

Overall, Adient plc's ROA has shown variability over the analyzed period, with both positive and negative trends. It is essential for the company to focus on maintaining a consistently positive ROA to ensure efficient asset utilization and sustained profitability in the future.