DTE Energy Company (DTE)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,397,000 | 1,083,000 | 907,000 | 1,368,000 | 1,169,000 |
| Total assets | US$ in thousands | 44,755,000 | 42,683,000 | 39,719,000 | 45,496,000 | 42,268,000 |
| ROA | 3.12% | 2.54% | 2.28% | 3.01% | 2.77% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,397,000K ÷ $44,755,000K
= 3.12%
The return on assets (ROA) for DTE Energy Co. has shown fluctuations over the past five years. In 2023, the ROA increased to 3.11% from 2.53% in 2022, indicating an improvement in the company's ability to generate profit from its assets. This suggests that the company was more efficient in utilizing its assets to generate earnings in 2023 compared to the previous year.
In 2021, the ROA was 2.28%, which was lower than both 2022 and 2023. This decrease could indicate a potential inefficiency in asset utilization during that period. However, the ROA rebounded in 2022 and continued to improve in 2023.
In 2020, the ROA was relatively high at 3.00%, indicating strong asset utilization to generate earnings. This was lower compared to 2023 but higher than both 2021 and 2022. Similarly, in 2019, the ROA was 2.79%, showing consistent performance in asset utilization to generate profit.
Overall, the trend in ROA for DTE Energy Co. shows some variability over the years, with improvements in 2023 compared to the previous years. It is essential for the company to continue monitoring and enhancing its asset efficiency to sustain and improve its profitability in the future.
Peer comparison
Dec 31, 2023