Advanced Energy Industries Inc (AEIS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 54,214 | 128,284 | 199,660 | 134,736 | 134,675 |
| Total assets | US$ in thousands | 2,261,890 | 2,556,760 | 1,992,170 | 1,817,340 | 1,648,640 |
| ROA | 2.40% | 5.02% | 10.02% | 7.41% | 8.17% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $54,214K ÷ $2,261,890K
= 2.40%
Advanced Energy Industries Inc's return on assets (ROA) has fluctuated over the past five years. In December 2020, the ROA stood at 8.17%, indicating that the company generated $0.0817 in profit for every dollar of assets it owned.
By December 2021, the ROA had decreased slightly to 7.41%, suggesting a slight decline in the company's profitability in relation to its assets. However, in December 2022, the ROA rebounded significantly to 10.02%, signaling a strong performance in generating profits relative to the assets employed.
Unfortunately, there was a notable decrease in the ROA to 5.02% by December 2023, indicating a drop in the efficiency of asset utilization or profitability challenges. This trend continued into December 2024, where the ROA fell further to 2.40%, signifying a significant decline in the company's ability to generate profits from its assets.
Overall, the fluctuating ROA of Advanced Energy Industries Inc over the five-year period highlights the importance of closely monitoring and analyzing asset management and profitability strategies to maintain and enhance financial performance.
Peer comparison
Dec 31, 2024