Dow Inc (DOW)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,116,000 | 1,064,000 | 1,152,000 | 1,198,000 | 589,000 | 1,307,000 | 1,744,000 | 2,920,000 | 4,582,000 | 5,705,000 | 6,649,000 | 6,889,000 | 6,311,000 | 5,829,000 | 4,121,000 | 1,995,000 | 1,243,000 | -2,321,000 | -1,963,000 | -1,663,000 |
| Total assets | US$ in thousands | 57,312,000 | 59,389,000 | 58,526,000 | 58,817,000 | 57,967,000 | 58,288,000 | 58,294,000 | 59,316,000 | 60,603,000 | 59,557,000 | 62,143,000 | 63,335,000 | 62,990,000 | 61,749,000 | 61,768,000 | 60,437,000 | 61,470,000 | 59,945,000 | 59,276,000 | 60,686,000 |
| ROA | 1.95% | 1.79% | 1.97% | 2.04% | 1.02% | 2.24% | 2.99% | 4.92% | 7.56% | 9.58% | 10.70% | 10.88% | 10.02% | 9.44% | 6.67% | 3.30% | 2.02% | -3.87% | -3.31% | -2.74% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,116,000K ÷ $57,312,000K
= 1.95%
To analyze Dow Inc's return on assets (ROA) over the specified 5-year period, we consider the trend of ROA percentages from March 31, 2020, to December 31, 2024.
The ROA started in negative territory in March 2020, indicating the company was not generating profits relative to its assets during that period. The trend continued to show negative values until December 2020, when the ROA turned positive at 2.02%, signifying a turnaround in the company's profitability relative to its assets.
From March 2021 onwards, there was a steady increase in the ROA percentage, with significant improvements recorded throughout the following quarters up to June 2022, where the ROA peaked at 10.70%. This period reflected a strong performance in efficiently utilizing assets to generate profits.
However, in the subsequent quarters, there was a gradual decline in the ROA figures, with a notable drop recorded by December 2024 at 1.95%. This decrease may indicate a decrease in asset productivity or profitability challenges faced by the company during this period.
Overall, the analysis of Dow Inc's ROA indicates a mix of negative and positive trends over the 5-year period, with periods of significant improvement in profitability relative to assets followed by slight downturns. Monitoring future ROA trends will be crucial to assess the company's ongoing operational efficiency and financial performance.
Peer comparison
Dec 31, 2024