American Electric Power Co Inc (AEP)

Return on assets (ROA)

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	3,916,200	4,217,300	3,771,700	3,166,400	2,943,100	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
Total assets	US$ in thousands	103,078,000	100,119,000	97,744,600	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
ROA		3.80%	4.21%	3.86%	3.27%	3.09%	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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $3,916,200K ÷ $103,078,000K
= 3.80%

American Electric Power Co Inc's return on assets (ROA) has shown fluctuating trends over the observed period. ROA stood at 2.53% as of December 31, 2019, and gradually increased to 2.84% by December 31, 2021, indicating a positive trajectory. However, there was a decrease to 2.52% on September 30, 2022, before reaching its peak of 4.21% on September 30, 2024.

The company's ROA performance indicates its efficiency in generating profits from its assets. A higher ROA suggests better asset utilization and profitability. The fluctuating nature of ROA could be influenced by various factors, such as changes in revenue, expenses, or asset management strategies.

Overall, the upward trend in ROA from 2019 to 2024, with some fluctuations, reflects American Electric Power Co Inc's ability to effectively utilize its assets to generate returns for shareholders.