The AES Corporation (AES)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 249,000 | -546,000 | -409,000 | 46,000 | 303,000 |
| Total assets | US$ in thousands | 44,799,000 | 38,363,000 | 32,963,000 | 34,603,000 | 33,648,000 |
| ROA | 0.56% | -1.42% | -1.24% | 0.13% | 0.90% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $249,000K ÷ $44,799,000K
= 0.56%
The return on assets (ROA) for AES Corp. has fluctuated over the past five years. In 2023, the company achieved an ROA of 0.56%, indicating that it generated a return of 0.56% for every dollar of assets it had. This was an improvement from the negative ROA in 2022 and 2021, where the company incurred losses on its assets. The positive ROA in 2020 and 2019 suggests that AES Corp. was more effective in generating profit from its assets during those years.
Overall, the ROA trend for AES Corp. shows inconsistency in effectively utilizing its assets to generate returns. Further analysis would be needed to understand the factors driving the fluctuations in ROA and to assess the company's asset management strategies and profitability levels more comprehensively.