Cognex Corporation (CGNX)
Return on assets (ROA)
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 113,234 | 215,525 | 279,881 | 176,186 | 203,865 |
Total assets | US$ in thousands | 2,017,810 | 1,958,140 | 2,003,660 | 1,800,700 | 1,885,940 |
ROA | 5.61% | 11.01% | 13.97% | 9.78% | 10.81% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $113,234K ÷ $2,017,810K
= 5.61%
Cognex Corp.'s Return on Assets (ROA) has shown fluctuations over the past five years. The ROA decreased from 10.81% in 2019 to 9.78% in 2020, indicating a slight decline in the company's efficiency in generating profits from its assets during that period. However, there was an improvement in 2021 when ROA increased to 13.97%, suggesting a more effective utilization of assets to generate earnings.
The trend reversed in 2022 as ROA declined to 11.01%, indicating a less efficient performance in generating profits relative to its total assets. The decrease continued in 2023 with ROA further declining to 5.61%, which may raise concerns about the company's asset management and profitability levels.
Overall, while Cognex Corp. has shown fluctuations in its ROA over the years, the recent decline in ROA may warrant further investigation into the company's asset utilization and operational efficiency.
Peer comparison
Dec 31, 2023