CVR Energy Inc (CVI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 769,000 | 463,000 | 25,000 | -256,000 | 380,000 |
| Total assets | US$ in thousands | 4,707,000 | 4,119,000 | 3,906,000 | 3,978,000 | 3,905,000 |
| ROA | 16.34% | 11.24% | 0.64% | -6.44% | 9.73% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $769,000K ÷ $4,707,000K
= 16.34%
The return on assets (ROA) of CVR Energy Inc has demonstrated significant fluctuations over the past five years. ROA stood at 16.34% at the end of 2023, reflecting a substantial improvement compared to the previous year. This indicates that the company generated $0.1634 in net income for every dollar of assets in 2023.
The steady increase in ROA from 2020 to 2023 suggests that the company effectively utilized its assets to generate profits during this period. However, it is worth noting that CVR Energy Inc faced challenges in 2020, with a negative ROA of -6.44%, indicating that the company incurred losses relative to its asset base that year.
The positive trend in ROA observed in recent years signifies improved operational efficiency and profitability for CVR Energy Inc. It is essential for the company to sustain or improve its ROA in the future to ensure continued success in utilizing its assets to generate returns for shareholders.
Peer comparison
Dec 31, 2023