Arch Resources Inc (ARCH)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 464,038 | 1,330,910 | 337,573 | -344,615 | 233,799 |
| Total assets | US$ in thousands | 2,484,170 | 2,433,110 | 2,117,160 | 1,722,470 | 1,867,760 |
| ROA | 18.68% | 54.70% | 15.94% | -20.01% | 12.52% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $464,038K ÷ $2,484,170K
= 18.68%
Arch Resources Inc's Return on Assets (ROA) has displayed significant fluctuations over the past five years. In 2019, the company reported an ROA of 12.52%, indicating that for every dollar of assets, the company generated a profit of 12.52 cents. This was followed by a substantial decrease in 2020, where the ROA turned negative at -20.01%, suggesting that the company experienced a loss relative to its asset base during that period.
However, the company managed to significantly improve its performance in the subsequent years. In 2021, Arch Resources Inc's ROA increased to 15.94%, reflecting a better utilization of assets to generate profits. The upward trend continued in 2022, with an ROA of 54.70%, indicating a substantial improvement in efficiency and profitability compared to the previous year.
In 2023, Arch Resources Inc further improved its ROA to 18.68%, although it was lower than the exceptional performance in 2022. Despite the slight decrease, the company's ability to generate returns from its assets remained healthy.
Overall, the analysis of Arch Resources Inc's ROA highlights the company's ability to enhance its operational efficiency and profitability over the years, showcasing a positive trend in utilizing its assets to generate profits.
Peer comparison
Dec 31, 2023