AdvanSix Inc (ASIX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 54,623 | 171,886 | 139,791 | 46,077 | 41,347 |
| Total assets | US$ in thousands | 1,496,020 | 1,495,330 | 1,312,000 | 1,263,410 | 1,235,970 |
| ROA | 3.65% | 11.49% | 10.65% | 3.65% | 3.35% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $54,623K ÷ $1,496,020K
= 3.65%
The return on assets (ROA) for AdvanSix Inc has shown some fluctuations over the past five years. In 2023, the ROA decreased to 3.65% from 11.49% in 2022, indicating a significant decline in the company's ability to generate profits from its assets. The ROA in 2023 is lower than the ROA in 2021, which was 10.65%, suggesting a decrease in efficiency in asset utilization.
When comparing the ROA in 2023 to the ROA in 2020 and 2019, which were also 3.65% and 3.35% respectively, it appears that the company's performance in utilizing its assets has remained relatively stable over these years.
Overall, the decreasing trend in ROA from 2022 to 2023 raises concerns about AdvanSix Inc's profitability and efficiency in generating earnings from its total assets in the most recent period. Further analysis of the company's financial performance and asset management strategies may be necessary to address the decline in ROA observed in 2023.
Peer comparison
Dec 31, 2023