Avis Budget Group Inc (CAR)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,821,000 | 1,632,000 | 2,764,000 | 1,285,000 | -684,000 |
| Total assets | US$ in thousands | 9,668,000 | 32,569,000 | 25,927,000 | 22,600,000 | 17,538,000 |
| ROA | -18.84% | 5.01% | 10.66% | 5.69% | -3.90% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-1,821,000K ÷ $9,668,000K
= -18.84%
Based on the data provided, Avis Budget Group Inc's return on assets (ROA) has exhibited significant fluctuations over the past five years. In December 2020, the ROA was negative at -3.90%, indicating that the company incurred a net loss relative to its total assets. Subsequently, in December 2021, the ROA improved to 5.69%, suggesting a positive return generated from its assets.
By December 2022, the ROA further increased to 10.66%, signaling a substantial improvement in the company's efficiency in generating profits from its assets. However, in December 2023, the ROA declined to 5.01%, indicating a slight decrease in profitability relative to its asset base.
The most recent data point in December 2024 shows a significant downturn in the ROA to -18.84%, reflecting a sharp decline in the company's ability to generate profits from its assets. This negative ROA may raise concerns about the company's profitability and operational efficiency.
Overall, the fluctuations in Avis Budget Group Inc's ROA over the five-year period suggest varying levels of profitability and efficiency in asset utilization. It is essential for stakeholders to further investigate the company's financial performance and operational strategies to understand the factors driving these changes in ROA.
Peer comparison
Dec 31, 2024