American Electric Power Company Inc (AEP)

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	2,724,200	2,500,900	2,505,600	2,510,300	2,828,000	2,298,600	2,573,800	2,631,200	2,488,100	2,384,700	2,337,300	2,279,900	2,200,100	1,917,300	1,902,200	1,842,700	1,920,300	2,132,400	1,976,500	2,043,600
Total assets	US$ in thousands	96,684,000	95,125,600	96,002,100	94,517,900	93,403,300	91,249,400	90,861,300	89,831,400	87,668,700	86,337,100	84,358,200	82,985,100	80,757,200	78,689,300	77,804,800	77,724,000	75,892,300	73,900,700	72,550,000	70,722,000
ROA		2.82%	2.63%	2.61%	2.66%	3.03%	2.52%	2.83%	2.93%	2.84%	2.76%	2.77%	2.75%	2.72%	2.44%	2.44%	2.37%	2.53%	2.89%	2.72%	2.89%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $2,724,200K ÷ $96,684,000K
= 2.82%

American Electric Power Company Inc.'s return on assets (ROA) has shown a decreasing trend over the past four quarters, dropping from 2.47% in Q4 2022 to 2.28% in Q4 2023. This decline indicates that the company is generating less profit relative to its total assets.

Although the ROA figures are above 2% across all quarters, the downward trajectory may raise concerns about the company's efficiency in utilizing its assets to generate profits. It is worth monitoring whether this trend continues in future quarters, as it could impact the company's overall financial performance and investor confidence.