Allegion PLC (ALLE)
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 | 540,400 | 557,100 | 515,400 | 488,500 | 458,000 | 435,500 | 464,400 | 468,000 | 483,000 | 463,500 | 466,900 | 421,900 | 314,300 | 301,700 | 286,400 | 322,000 | 401,800 | 453,900 | 438,300 | 442,900 |
| Total assets | US$ in thousands | 4,311,500 | 4,183,100 | 4,163,800 | 4,124,400 | 3,991,200 | 3,943,300 | 3,653,700 | 3,007,600 | 3,051,000 | 3,116,700 | 3,060,100 | 2,947,900 | 3,069,400 | 3,027,700 | 2,833,900 | 2,757,700 | 2,967,200 | 2,865,400 | 2,849,300 | 2,800,800 |
| ROA | 12.53% | 13.32% | 12.38% | 11.84% | 11.48% | 11.04% | 12.71% | 15.56% | 15.83% | 14.87% | 15.26% | 14.31% | 10.24% | 9.96% | 10.11% | 11.68% | 13.54% | 15.84% | 15.38% | 15.81% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $540,400K ÷ $4,311,500K
= 12.53%
Allegion plc's return on assets (ROA) has fluctuated over the past eight quarters. In the most recent quarter, Q4 2023, the ROA was 12.53%, which is slightly lower than the previous quarter's figure of 13.32%. Despite this slight decrease, Allegion plc's ROA remains above 10% for the last eight quarters, indicating the company's ability to generate earnings relative to its total assets.
Looking at the trend over the past year, there seems to be some seasonality in ROA performance. The ROA peaked in Q1 2022 at 15.56% and has been relatively lower since then. It is important to investigate the reasons behind this fluctuation, as a declining trend in ROA could indicate inefficiencies in asset utilization or declining profitability.
Overall, Allegion plc's ROA performance indicates the company's ability to efficiently utilize its assets to generate profits, but management should continue to monitor and analyze the factors influencing these fluctuations to ensure sustained financial performance.