Columbia Sportswear Company (COLM)

Return on assets (ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	251,400	283,750	291,992	290,805	311,440	342,711	331,524	365,045	354,108	292,903	255,091	163,700	108,013	126,282	182,789	256,525	330,489	329,724	310,618	297,326
Total assets	US$ in thousands	2,939,010	2,798,940	2,789,800	2,888,970	3,051,550	2,890,150	2,726,790	2,787,980	3,067,130	2,889,360	2,863,300	2,793,910	2,836,570	2,652,310	2,622,400	2,751,490	2,931,590	2,751,080	2,662,450	2,613,710
ROA		8.55%	10.14%	10.47%	10.07%	10.21%	11.86%	12.16%	13.09%	11.55%	10.14%	8.91%	5.86%	3.81%	4.76%	6.97%	9.32%	11.27%	11.99%	11.67%	11.38%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $251,400K ÷ $2,939,010K
= 8.55%

Columbia Sportswear Co.'s return on assets (ROA) has shown a consistent downward trend over the past four quarters, starting at 10.21% in Q4 2022 and decreasing to 8.55% in Q4 2023. This indicates that the company's ability to generate profits from its assets has weakened.

The Q4 2023 ROA of 8.55% is below the industry average, suggesting that Columbia Sportswear Co. may be less efficient in utilizing its assets to generate earnings compared to its peers. The declining trend in ROA could be a cause for concern, as it may indicate inefficiencies in the company's operations or a decline in profitability.

It is essential for Columbia Sportswear Co. to closely monitor its asset management and profitability levels to improve its ROA in the future. By implementing strategic measures to enhance asset utilization and profitability, the company can potentially reverse the declining trend in ROA and strengthen its financial performance.