American Electric Power Co Inc (AEP)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 2,967,100 2,208,100 2,307,200 2,488,100 2,200,100
Total assets US$ in thousands 103,078,000 96,684,000 93,403,300 87,668,700 80,757,200
ROA 2.88% 2.28% 2.47% 2.84% 2.72%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $2,967,100K ÷ $103,078,000K
= 2.88%

American Electric Power Co Inc's return on assets (ROA) has shown some fluctuations over the past five years. In December 2020, the ROA was 2.72%, which slightly increased to 2.84% by December 2021. However, by December 2022, the ROA declined to 2.47% and further decreased to 2.28% by December 2023. The company then experienced a slight recovery in its ROA, reaching 2.88% by December 2024.

Overall, the trend in ROA for American Electric Power Co Inc indicates some variability in its ability to generate profits from its assets. The slight fluctuations in ROA over the years may suggest changing efficiency in asset utilization or profitability. It would be important for stakeholders to further investigate the underlying reasons for these fluctuations to assess the company's financial performance and sustainability.