Allegion PLC (ALLE)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 597,500 | 540,400 | 458,000 | 483,000 | 314,300 |
| Total assets | US$ in thousands | 4,487,800 | 4,311,500 | 3,991,200 | 3,051,000 | 3,069,400 |
| ROA | 13.31% | 12.53% | 11.48% | 15.83% | 10.24% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $597,500K ÷ $4,487,800K
= 13.31%
Based on the data provided, Allegion PLC's return on assets (ROA) has shown positive trends over the last five years. The ROA increased from 10.24% as of December 31, 2020, to 15.83% as of December 31, 2021, indicating improved asset utilization and profitability. In the subsequent years, the ROA fluctuated between 11.48% and 13.31%, suggesting a relatively stable performance in generating profits from its assets.
Overall, Allegion PLC has been effectively managing its assets to generate returns for its stakeholders, with the ROA consistently above 10% in the past five years. This indicates the company's efficiency in utilizing its assets to generate profits and adds value to its operations. However, it would be important to monitor any fluctuations in the ROA to ensure sustainable and growing returns in the future.