The AES Corporation (AES)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,679,000 | 249,000 | -546,000 | -409,000 | 46,000 |
| Total assets | US$ in thousands | 47,406,000 | 44,799,000 | 38,363,000 | 32,963,000 | 34,603,000 |
| ROA | 3.54% | 0.56% | -1.42% | -1.24% | 0.13% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,679,000K ÷ $47,406,000K
= 3.54%
The return on assets (ROA) of The AES Corporation has displayed varied performance over the past five years. In December 2020, the ROA stood at 0.13%, indicating a modest return generated on its assets. However, there was a significant decline in performance by December 2021, with the ROA falling to -1.24%, signaling a negative return on assets and potential inefficiencies in asset utilization.
The negative trend continued into December 2022, with the ROA decreasing further to -1.42%, suggesting continued challenges in generating profits from its asset base. However, by December 2023, there was a notable improvement in performance, as the ROA rebounded to 0.56%, indicating a return generated on assets after the consecutive years of negative performance.
The most significant improvement in ROA was observed by December 2024, where the metric surged to 3.54%. This sharp increase suggests a more efficient utilization of assets, resulting in a substantial return generated on the assets deployed by The AES Corporation.
Overall, the fluctuating trend in ROA signals the company's varying efficiency in generating profits from its asset base over the years, with the recent uptrend demonstrating a positive sign of improving performance and asset utilization. It is essential for The AES Corporation to sustain and build upon this positive momentum to enhance its overall financial health and profitability.