Allegheny Technologies Incorporated (ATI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 410,800 | 130,900 | -38,200 | -1,572,600 | 252,500 |
| Total assets | US$ in thousands | 4,985,100 | 4,445,600 | 4,285,200 | 4,034,900 | 5,634,600 |
| ROA | 8.24% | 2.94% | -0.89% | -38.97% | 4.48% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $410,800K ÷ $4,985,100K
= 8.24%
The return on assets (ROA) for ATI Inc has varied significantly over the past five years. In 2023, the ROA significantly increased to 8.24%, indicating that the company generated 8.24 cents of net income for every dollar of assets it holds. This improvement suggests that ATI Inc has become more efficient in utilizing its assets to generate profits.
The sharp increase in ROA from 2022 to 2023 is a positive indicator of the company's financial performance. In contrast, the ROA was negative in 2021 and 2020, indicating that the company incurred losses relative to its assets in those years. The substantial negative ROA in 2020 suggests that ATI Inc faced significant financial challenges that year.
However, in 2019, the ROA was 4.57%, showing a positive profitability trend compared to the negative ROA in the subsequent years. Overall, the fluctuating ROA reflects the company's changing financial performance and underscores the importance of effective asset management in driving profitability for ATI Inc.