Dow Inc (DOW)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,116,000	589,000	4,582,000	6,311,000	1,225,000
Total assets	US$ in thousands	57,312,000	57,967,000	60,603,000	62,990,000	61,470,000
ROA		1.95%	1.02%	7.56%	10.02%	1.99%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,116,000K ÷ $57,312,000K
= 1.95%

The return on assets (ROA) for Dow Inc has fluctuated over the past five years. As of December 31, 2020, the ROA was 1.99%, indicating that the company generated a return of 1.99% on its total assets during that period.

By December 31, 2021, Dow Inc's ROA had significantly improved to 10.02%, suggesting a more efficient utilization of assets to generate profit. This increase possibly reflects enhanced operational performance or strategic decisions that boosted profitability relative to the asset base.

In 2022, the ROA decreased to 7.56%, indicating a slight decline in the company's ability to generate earnings from its assets compared to the previous year. The drop could be attributed to various internal or external factors impacting the company's financial performance.

By December 31, 2023, the ROA further decreased to 1.02%, signaling a significant decline in profitability relative to the asset base. This reduction might necessitate a closer examination of the company's operational efficiency or financial health to identify areas for improvement.

Lastly, as of December 31, 2024, the ROA slightly increased to 1.95%. While the uptick shows a modest improvement in profitability compared to the previous year, it remains below the levels seen in 2021 and 2022.

Overall, Dow Inc's ROA has experienced fluctuations over the analyzed period, indicating varying levels of efficiency in generating profits from its assets. It is essential for stakeholders to monitor these trends and assess the company's performance in utilizing its asset base effectively.