Smith AO Corporation (AOS)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 533,600 | 561,200 | 576,500 | 577,300 | 556,600 | 299,200 | 273,600 | 242,800 | 235,700 | 495,400 | 517,200 | 509,200 | 487,100 | 467,500 | 441,300 | 390,900 | 344,900 | 316,200 | 298,100 | 332,400 |
| Total assets | US$ in thousands | 3,240,000 | 3,154,200 | 3,197,600 | 3,182,200 | 3,213,900 | 3,200,100 | 3,248,800 | 3,336,300 | 3,332,300 | 3,231,900 | 3,321,400 | 3,434,900 | 3,474,400 | 3,300,000 | 3,140,200 | 3,106,800 | 3,160,700 | 2,971,100 | 2,984,200 | 2,983,000 |
| ROA | 16.47% | 17.79% | 18.03% | 18.14% | 17.32% | 9.35% | 8.42% | 7.28% | 7.07% | 15.33% | 15.57% | 14.82% | 14.02% | 14.17% | 14.05% | 12.58% | 10.91% | 10.64% | 9.99% | 11.14% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $533,600K ÷ $3,240,000K
= 16.47%
Smith AO Corporation has experienced fluctuations in its return on assets (ROA) over the past few years. The ROA has shown a general upward trend from March 2020 to June 2022, reaching its peak at 15.57% in June 2022. This increase indicates that the company has been generating higher profits relative to its total assets during this period.
However, starting from December 2022, there was a significant decline in ROA, dropping to 7.07% by the end of that year. The trend continued into the first half of 2023, with ROA hovering around the 7-9% range, indicating a decrease in the company's efficiency in generating profits from its assets.
The situation improved in the latter part of 2023 and throughout 2024, with ROA showing an upward trajectory, reaching a peak of 18.14% in March 2024. This suggests that Smith AO Corporation managed to enhance its asset utilization and profitability during this period.
However, there was a slight decline in ROA by the end of 2024, dropping to 16.47% in December. Overall, the company's ROA has displayed fluctuations over the analyzed period, indicating varying levels of efficiency in utilizing its assets to generate profits. It would be important for stakeholders to closely monitor these trends to ensure sustained profitability and effectiveness in asset management in the future.
Peer comparison
Dec 31, 2024