Avient Corp (AVNT)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 169,500 | 75,700 | 83,100 | 230,800 | 131,600 |
| Total assets | US$ in thousands | 5,811,100 | 5,968,500 | 6,085,000 | 5,002,900 | 4,871,300 |
| ROA | 2.92% | 1.27% | 1.37% | 4.61% | 2.70% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $169,500K ÷ $5,811,100K
= 2.92%
Based on the provided data for Avient Corp's Return on Assets (ROA) over the years, the trend shows some fluctuations.
- In December 31, 2020, the ROA was 2.70%, indicating that the company generated $0.027 in profit for every dollar of assets.
- By December 31, 2021, the ROA improved to 4.61%, reflecting a more efficient utilization of assets to generate profit.
- However, there was a decline in ROA to 1.37% by December 31, 2022, suggesting a decrease in profitability in relation to its asset base.
- The trend continued with ROA falling further to 1.27% by December 31, 2023, indicating a continued challenge in generating profit from its assets.
- By December 31, 2024, the ROA recovered to 2.92%, showing an improvement in profitability relative to the asset base compared to the previous year.
Overall, Avient Corp's ROA has shown variability over the years, with fluctuations in how effectively the company is using its assets to generate profit. It would be important for stakeholders to further assess the underlying reasons for these fluctuations to determine the company's asset management efficiency and profitability sustainability.
Peer comparison
Dec 31, 2024