CF Industries Holdings Inc (CF)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,525,000 | 3,346,000 | 917,000 | 317,000 | 493,000 |
| Total assets | US$ in thousands | 14,376,000 | 13,313,000 | 12,375,000 | 12,023,000 | 12,172,000 |
| ROA | 10.61% | 25.13% | 7.41% | 2.64% | 4.05% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,525,000K ÷ $14,376,000K
= 10.61%
CF Industries Holdings Inc has experienced fluctuations in its return on assets (ROA) over the past five years. The ROA stood at 10.61% at the end of 2023, showing a decrease from the previous year's level of 25.13%. This decline could be indicative of a decrease in the company's ability to generate profit from its assets efficiently.
Looking further back, the ROA was 7.41% at the end of 2021, lower than the 2022 level. However, there was a notable improvement compared to the ROA of 2.64% at the end of 2020. This improvement suggests that the company was able to enhance its asset utilization and generate higher returns relative to the previous year.
Comparing the most recent ROA to the levels in 2019, where it was 4.05%, there has been a substantial improvement in 2023. This indicates that the company has made progress in utilizing its assets effectively to generate profits.
In summary, CF Industries Holdings Inc's ROA has exhibited fluctuations over the years, with the most recent data showing a decrease from the previous year but a notable improvement compared to earlier years. Further analysis would be required to understand the factors driving these changes and to assess the company's overall financial performance and asset management strategies.
Peer comparison
Dec 31, 2023