Deere & Company (DE)
Return on assets (ROA)
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,100,000 | 7,100,000 | 10,166,000 | 10,166,000 | 7,131,000 |
| Total assets | US$ in thousands | 107,320,000 | 107,320,000 | 104,087,000 | 104,087,000 | 90,030,000 |
| ROA | 6.62% | 6.62% | 9.77% | 9.77% | 7.92% |
October 31, 2024 calculation
ROA = Net income ÷ Total assets
= $7,100,000K ÷ $107,320,000K
= 6.62%
The return on assets (ROA) for Deere & Company has shown a mixed trend over the past few years. In October 2022, the ROA stood at 7.92%, indicating that the company generated $0.0792 in profit for every dollar of assets it held.
Over the next year, there was an improvement in performance, with the ROA increasing to 9.77% by October 2023. This was a positive sign, suggesting that the company was more efficient in utilizing its assets to generate profits.
However, there was a subsequent decline in the ROA to 6.62% by October 2024. This decrease could be a cause for concern as it indicates a reduction in profitability relative to the size of the company's asset base.
Overall, it is important for Deere & Company to monitor its ROA closely and implement strategies to optimize asset utilization and improve profitability in order to create sustainable value for its stakeholders.
Peer comparison
Oct 31, 2024