CenterPoint Energy Inc (CNP)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 917,000 | 1,057,000 | 1,486,000 | -773,000 | 791,000 |
| Total assets | US$ in thousands | 39,715,000 | 38,546,000 | 37,679,000 | 33,471,000 | 35,529,000 |
| ROA | 2.31% | 2.74% | 3.94% | -2.31% | 2.23% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $917,000K ÷ $39,715,000K
= 2.31%
The return on assets (ROA) of Centerpoint Energy Inc. has fluctuated over the past five years. In 2023, the ROA decreased to 2.18% from 2.62% in 2022. This decrease may indicate a decline in the company's ability to generate profits from its assets in the most recent year.
Comparing the ROA to previous years, it is evident that the company's performance in 2023 was weaker than in 2021 when the ROA was 3.69%. However, the ROA in 2023 was an improvement from 2020 when it was negative at -2.84%, suggesting that Centerpoint Energy Inc. was able to turn its assets more effectively to generate positive returns in the most recent year.
Overall, while the ROA of Centerpoint Energy Inc. has shown some volatility over the past five years, it is important for stakeholders to monitor the company's asset management efficiency closely to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023