Chesapeake Utilities Corporation (CPK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 87,212 | 89,796 | 83,466 | 71,498 | 65,153 |
| Total assets | US$ in thousands | 3,304,700 | 2,215,040 | 2,114,870 | 1,932,490 | 1,783,200 |
| ROA | 2.64% | 4.05% | 3.95% | 3.70% | 3.65% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $87,212K ÷ $3,304,700K
= 2.64%
The return on assets (ROA) of Chesapeake Utilities Corp has been trending downwards over the past five years, from 3.65% in 2019 to 2.64% in 2023. This indicates a decline in the company's ability to generate profits relative to its total assets.
The lower ROA in 2023 compared to previous years suggests that Chesapeake Utilities Corp may be experiencing challenges in efficiently utilizing its assets to generate earnings. Investors and stakeholders may be concerned about the company's profitability and asset management efficiency based on this trend.
It would be important for Chesapeake Utilities Corp to evaluate its operational efficiency, asset utilization, and overall business performance to improve its ROA and profitability in the future. Further analysis and comparison with industry peers may provide additional insights into the company's financial health and competitive position.
Peer comparison
Dec 31, 2023