Allegion PLC (ALLE)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 540,400 | 458,000 | 483,000 | 314,300 | 401,800 |
| Total assets | US$ in thousands | 4,311,500 | 3,991,200 | 3,051,000 | 3,069,400 | 2,967,200 |
| ROA | 12.53% | 11.48% | 15.83% | 10.24% | 13.54% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $540,400K ÷ $4,311,500K
= 12.53%
The return on assets (ROA) of Allegion plc has shown some fluctuations over the past five years. In 2023, the ROA was 12.53%, compared to 11.48% in 2022, indicating an improvement in the company's ability to generate profits from its assets. However, the ROA was lower than 15.83% in 2021 and 13.54% in 2019.
Overall, Allegion plc's ROA has been relatively healthy, with values consistently above 10% over the five-year period. This suggests that the company has been efficiently utilizing its assets to generate profits, although there have been some variations in performance. Further analysis would be needed to understand the factors contributing to these fluctuations and assess the company's overall asset management effectiveness.