Constellation Energy Corp (CEG)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,749,000 | 1,623,000 | -154,000 | -73,000 | 589,000 |
| Total assets | US$ in thousands | 52,926,000 | 50,758,000 | 46,909,000 | 48,086,000 | 48,094,000 |
| ROA | 7.08% | 3.20% | -0.33% | -0.15% | 1.22% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $3,749,000K ÷ $52,926,000K
= 7.08%
Constellation Energy Corp's return on assets (ROA) has shown fluctuations in recent years. At the end of December 31, 2020, the ROA was recorded at 1.22%, indicating that the company generated a modest return on its assets. However, by the end of December 31, 2021, the ROA dipped to -0.15%, reflecting a negative return on assets for that period.
The negative trend continued into December 31, 2022, with the ROA dropping further to -0.33%. This indicates that the company's assets were not efficiently utilized to generate profits during that year. However, there was a significant turnaround by December 31, 2023, as the ROA surged to 3.20%, signaling a notable improvement in asset efficiency and profitability.
The most recent data point, as of December 31, 2024, shows a substantial increase in ROA to 7.08%, suggesting that Constellation Energy Corp was able to significantly boost its return on assets, potentially through effective asset management strategies or increased revenue generation.
Overall, Constellation Energy Corp's ROA has displayed volatility over the years, with both negative and positive fluctuations. It would be essential for the company to focus on maintaining or improving its ROA consistently to ensure efficient utilization of its assets and sustainable profitability in the long run.
Peer comparison
Dec 31, 2024