Smith AO Corporation (AOS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 533,600 | 556,600 | 235,700 | 487,100 | 344,900 |
| Total assets | US$ in thousands | 3,240,000 | 3,213,900 | 3,332,300 | 3,474,400 | 3,160,700 |
| ROA | 16.47% | 17.32% | 7.07% | 14.02% | 10.91% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $533,600K ÷ $3,240,000K
= 16.47%
Based on the data provided, Smith AO Corporation's return on assets (ROA) has exhibited fluctuating trends over the years. In 2020, the ROA stood at 10.91%, indicating that for every dollar of assets, the company generated a return of 10.91 cents. The ROA then increased to 14.02% by the end of 2021, suggesting improved efficiency in utilizing its assets to generate profits.
However, in 2022, there was a significant drop in the ROA to 7.07%, indicating a potential decrease in asset efficiency or profitability during that period. The following year, in 2023, there was a substantial rebound as the ROA surged to 17.32%, reflecting a strong performance in utilizing assets to generate profits.
By the end of 2024, the ROA slightly decreased to 16.47%, still indicating a relatively robust performance in generating returns from its assets. Overall, the company's ROA has displayed variability over the years, with both positive and negative movements in asset efficiency and profitability levels. It would be essential for stakeholders to delve deeper into the underlying factors driving these fluctuations to assess the company's operational effectiveness and financial health accurately.
Peer comparison
Dec 31, 2024