Centene Corp (CNC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,702,000 | 1,202,000 | 1,347,000 | 1,808,000 | 1,321,000 |
| Total assets | US$ in thousands | 84,641,000 | 76,870,000 | 78,375,000 | 68,719,000 | 40,994,000 |
| ROA | 3.19% | 1.56% | 1.72% | 2.63% | 3.22% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $2,702,000K ÷ $84,641,000K
= 3.19%
Return on assets (ROA) measures a company's ability to generate profits from its total assets. Looking at Centene Corp.'s ROA over the past five years, we observe a mixed trend.
In 2023, Centene Corp.'s ROA improved to 3.19% from 1.56% in 2022. This significant increase suggests that the company became more efficient in generating profits from its assets.
However, in 2022 and 2021, Centene Corp.'s ROA was lower at 1.56% and 1.72% respectively. This indicates that the company's profitability in relation to its assets was weaker during these years.
Furthermore, in 2020 and 2019, Centene Corp. experienced higher ROA figures of 2.63% and 3.22% respectively. These years reflect better efficiency in utilizing assets to generate profits compared to 2021 and 2022.
Overall, Centene Corp.'s ROA has shown variability over the past five years, indicating fluctuations in the company's ability to generate profits from its asset base. This fluctuation may be influenced by various factors such as changes in operational efficiency, management decisions, or economic conditions. It would be crucial for stakeholders to closely monitor Centene Corp.'s ROA to assess its ongoing financial performance and asset utilization efficiency.
Peer comparison
Dec 31, 2023