Bio-Rad Laboratories Inc (BIO)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-637,300	-3,627,500	4,254,260	3,814,230	1,758,700
Total assets	US$ in thousands	12,299,100	13,501,700	17,799,400	12,972,600	8,008,860
ROA		-5.18%	-26.87%	23.90%	29.40%	21.96%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-637,300K ÷ $12,299,100K
= -5.18%

The return on assets (ROA) for Bio-Rad Laboratories Inc. has exhibited significant fluctuations over the past five years. In 2023, the ROA was -5.18%, indicating that the company generated a negative return on its total assets. This decline follows a substantial decrease from the prior year, where the ROA was -26.87%, suggesting a deepening loss in asset efficiency.

In contrast, in 2021, the company experienced a robust ROA of 23.89%, signifying a strong ability to generate profit relative to its total assets. This positive performance continued from 2020 when the ROA stood at 29.34%, indicating a high level of asset utilization and profitability. Similarly, in 2019, the ROA was 21.96%, reflecting a good return on assets.

The fluctuating trend in ROA for Bio-Rad Laboratories Inc. warrants further investigation into the factors driving these variations. A negative ROA may raise concerns about the company's operational efficiency and profitability, while positive ROA figures indicate effective asset utilization. Monitoring ROA over time can provide valuable insights into the company's financial health and performance in generating profits from its assets.