PC Connection Inc (CNXN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 87,095 | 83,271 | 89,219 | 69,906 | 55,765 |
| Total assets | US$ in thousands | 1,299,350 | 1,188,380 | 1,099,830 | 1,083,380 | 1,015,370 |
| ROA | 6.70% | 7.01% | 8.11% | 6.45% | 5.49% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $87,095K ÷ $1,299,350K
= 6.70%
PC Connection Inc's return on assets (ROA) has shown a positive trend over the past five years, increasing from 5.49% as of December 31, 2020, to 6.45% by December 31, 2021, and further to 8.11% by December 31, 2022. However, there was a slight decrease to 7.01% by December 31, 2023, and a further decline to 6.70% as of December 31, 2024.
Overall, PC Connection Inc has demonstrated an ability to generate a reasonable return on its assets during this period. The peak ROA of 8.11% in 2022 indicates efficient asset utilization, but the subsequent declines in 2023 and 2024 suggest a potential need for management to focus on improving asset performance to sustain or enhance profitability in the future.
Peer comparison
Dec 31, 2024