Avis Budget Group Inc (CAR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,632,000 | 2,764,000 | 1,285,000 | -684,000 | 302,000 |
| Total assets | US$ in thousands | 32,569,000 | 25,927,000 | 22,600,000 | 17,538,000 | 23,126,000 |
| ROA | 5.01% | 10.66% | 5.69% | -3.90% | 1.31% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,632,000K ÷ $32,569,000K
= 5.01%
Avis Budget Group Inc's return on assets (ROA) has fluctuated over the past five years. In the most recent fiscal year ending December 31, 2023, the ROA was 5.01%, representing a decrease from the previous year's 10.66%. This decline may suggest a decrease in the company's ability to generate profits from its assets.
Looking at the trend over the five-year period, Avis Budget Group's ROA was positive in all years except 2020 when it turned negative at -3.90%. This indicates that the company faced challenges in generating profits relative to its total assets in 2020.
The highest ROA was recorded in 2022 at 10.66%, showcasing a significant improvement from the previous years. This could indicate better asset utilization and efficiency in generating profits during that year.
Overall, Avis Budget Group's ROA performance has been mixed over the past five years, with fluctuations reflecting changes in the company's profitability and asset management efficiency. Further analysis would be required to understand the specific factors influencing these fluctuations and to assess the company's overall financial health.
Peer comparison
Dec 31, 2023