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.