Deluxe Corporation (DLX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 26,120 | 65,395 | 62,633 | 5,244 | -223,779 |
| Total assets | US$ in thousands | 3,080,620 | 3,076,520 | 3,074,380 | 1,842,180 | 1,943,310 |
| ROA | 0.85% | 2.13% | 2.04% | 0.28% | -11.52% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $26,120K ÷ $3,080,620K
= 0.85%
Deluxe Corp.'s return on assets (ROA) fluctuated significantly over the past five years. In 2023, the ROA stands at 0.85%, a decrease compared to the previous year's 2.12%. Despite the decline, the ROA remains positive in 2023, which suggests that the company is generating a modest return on its assets.
Looking back at previous years, Deluxe Corp. showed a consistent improvement in ROA from 2020 to 2022, indicating a more efficient utilization of assets to generate profits. However, the most notable transformation occurred from 2019 to 2020 when the ROA surged from a negative figure (-10.29%) to 0.47%, signifying a significant turnaround in asset management.
Overall, while Deluxe Corp. experienced fluctuations in its ROA over the years, the positive trend from 2020 to 2022 is a positive sign of the company's ability to generate earnings relative to its asset base. It is essential for the company to continue optimizing its asset management strategies to sustain and improve its return on assets in the future.