DXP Enterprises Inc (DXPE)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 68,812 | 48,155 | 16,496 | -29,269 | 37,025 |
| Total assets | US$ in thousands | 1,177,440 | 1,037,280 | 894,227 | 868,131 | 788,220 |
| ROA | 5.84% | 4.64% | 1.84% | -3.37% | 4.70% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $68,812K ÷ $1,177,440K
= 5.84%
The return on assets (ROA) of DXP Enterprises Inc has shown fluctuations over the past five years. In 2023, the ROA improved to 5.84% from 4.64% in 2022, indicating that the company generated a higher level of profit relative to its total assets. This may suggest better asset utilization or improved profitability.
Comparing with 2021, where the ROA was 1.84%, the significant increase in 2023 indicates a substantial improvement in the company's efficiency in generating profits with its assets. It is also noteworthy that in 2020, the ROA was negative at -3.37%, indicating that the company's assets were not efficiently utilized to generate profits during that period.
The comparison with 2019, where the ROA was 4.70%, shows that the current ROA in 2023 is slightly higher, indicating that the company has been able to maintain or improve its profitability relative to its asset base over the years.
Overall, the trend in ROA for DXP Enterprises Inc shows variability, with both positive and negative values over the past five years. It is essential for the company to continue monitoring and improving its asset management and profitability to ensure sustainable growth and value creation for its stakeholders.
Peer comparison
Dec 31, 2023