Century Communities Inc (CCS)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	259,224	525,126	498,504	206,157	112,994
Total assets	US$ in thousands	4,139,360	3,773,770	3,496,880	2,845,090	2,499,970
ROA		6.26%	13.92%	14.26%	7.25%	4.52%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $259,224K ÷ $4,139,360K
= 6.26%

Century Communities Inc's Return on Assets (ROA) has shown fluctuating performance over the past five years. In 2019, the ROA was at 4.52%, indicating that for every dollar of assets, the company generated a profit of 4.52 cents. There was a notable improvement in 2020, with the ROA increasing to 7.25%, reflecting better utilization of assets to generate profits.

Subsequently, in 2021, the ROA further increased to 14.26%, reaching its peak over the five-year period. This significant jump suggests that Century Communities Inc was able to significantly enhance its profitability relative to its asset base during that year.

However, the company experienced a decline in ROA in the following years. In 2022, the ROA decreased to 13.92%, indicating a slight dip in profitability from the previous year. The trend continued in 2023, with the ROA dropping to 6.26%. Although the ROA remained positive, the decreasing trend in the past two years suggests that Century Communities Inc may be facing challenges in generating profits relative to its asset base.

In conclusion, Century Communities Inc's ROA has shown variability over the past five years, with peaks in 2021 and 2022, followed by a decline in 2023. Investors and analysts should closely monitor the company's ability to effectively utilize its assets to generate profits in the future to assess its financial performance and sustainability.