Autoliv Inc (ALV)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 488,000 | 423,000 | 435,000 | 187,000 | 462,000 |
| Total assets | US$ in thousands | 8,332,000 | 7,717,000 | 7,537,000 | 8,157,000 | 6,771,200 |
| ROA | 5.86% | 5.48% | 5.77% | 2.29% | 6.82% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $488,000K ÷ $8,332,000K
= 5.86%
Autoliv Inc.'s return on assets (ROA) fluctuated over the past five years, ranging from a low of 2.29% in 2020 to a high of 6.82% in 2019. In 2023, the ROA was 5.84%, showing a slight increase compared to the previous year's 5.48%. This indicates that the company generated $0.0584 in profit for every dollar of assets in 2023.
The improvement in ROA from 2020 to 2023 suggests better utilization of assets to generate profits. However, the ROA in 2023 is still lower than the peak recorded in 2019. Autoliv Inc. should continue to focus on efficiently managing its assets to enhance profitability and create more value for its shareholders.
Peer comparison
Dec 31, 2023