Peabody Energy Corp (BTU)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 759,600 | 1,297,100 | 360,100 | -1,870,300 | -211,300 |
| Total assets | US$ in thousands | 5,962,100 | 5,610,800 | 4,949,800 | 4,667,100 | 6,542,800 |
| ROA | 12.74% | 23.12% | 7.28% | -40.07% | -3.23% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $759,600K ÷ $5,962,100K
= 12.74%
Peabody Energy Corp's Return on Assets (ROA) has varied significantly over the past five years. In 2023, the ROA stood at 12.74%, indicating that the company generated a profit of approximately 12.74 cents for every dollar of assets it owns. This represents a decrease from the previous year's ROA of 23.12%, suggesting a potential decline in the company's efficiency in generating earnings from its assets.
Looking back further, in 2021, the ROA was 7.28%, showing a moderate return compared to 2020 when the ROA was negative at -40.07%. A negative ROA signals that the company was operating at a loss relative to its asset base. Furthermore, in 2019, the ROA was -3.23%, which indicates a continuation of poor performance in utilizing assets effectively to generate profits.
Overall, Peabody Energy Corp's ROA performance has been volatile, with both positive and negative fluctuations in recent years. Investors and stakeholders may need to closely monitor the company's asset management strategies and operational efficiency to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2023