AdvanSix Inc (ASIX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 44,149 | 54,623 | 171,886 | 139,791 | 46,077 |
| Total assets | US$ in thousands | 1,594,920 | 1,496,020 | 1,495,330 | 1,312,000 | 1,263,410 |
| ROA | 2.77% | 3.65% | 11.49% | 10.65% | 3.65% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $44,149K ÷ $1,594,920K
= 2.77%
AdvanSix Inc's return on assets (ROA) has shown fluctuations over the past five years. As of December 31, 2020, the ROA stood at 3.65%, indicating that the company generated $0.0365 in profits for every dollar of assets. Subsequently, there was a significant improvement in ROA to 10.65% by December 31, 2021, and further to 11.49% by December 31, 2022, suggesting enhanced efficiency in asset utilization.
However, there was a notable decrease in ROA to 3.65% by December 31, 2023, which may indicate a decline in profitability relative to the assets employed. The trend continued as the ROA further decreased to 2.77% by December 31, 2024, potentially signaling an inefficiency in generating earnings from the company's assets.
Overall, while AdvanSix Inc experienced a period of improved profitability in 2021 and 2022, the subsequent decrease in ROA highlights the importance of closely monitoring and managing asset utilization to sustain and enhance financial performance over time.
Peer comparison
Dec 31, 2024