Smith AO Corporation (AOS)
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 | 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 | 370,000 | 405,000 | 422,300 | 434,700 |
| Total assets | US$ in thousands | 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 | 3,058,000 | 3,067,900 | 3,175,600 | 3,143,500 |
| ROA | 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% | 12.10% | 13.20% | 13.30% | 13.83% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $556,600K ÷ $3,213,900K
= 17.32%
A.O. Smith Corp.'s return on assets (ROA) has fluctuated over the past eight quarters, ranging from 7.07% to 17.32%. In the most recent quarter, Q4 2023, the ROA stood at 17.32%, marking a significant increase compared to the previous quarters. This indicates that the company generated $17.32 in net income for every $100 of total assets in Q4 2023.
The ROA of 17.32% in Q4 2023 reflects strong efficiency in utilizing its assets to generate profits. The company's ability to generate higher returns on assets suggests effective management of its resources, potentially through improved operational efficiency, cost controls, or strategic investments.
Despite some fluctuations in previous quarters, A.O. Smith Corp.'s ROA has generally remained above 7% over the past two years, indicating consistent profitability relative to its asset base. This trend suggests that the company has been effectively leveraging its assets to generate profits and create value for shareholders.
Overall, the upward trend in ROA, particularly in the most recent quarter, indicates positive performance and efficiency in utilizing assets to generate returns for A.O. Smith Corp.
Peer comparison
Dec 31, 2023