Consolidated Edison Inc (ED)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,820,000 | 2,519,000 | 1,660,000 | 1,346,000 | 1,101,000 |
| Total assets | US$ in thousands | 23,001,000 | 66,331,000 | 69,065,000 | 63,116,000 | 62,895,000 |
| ROA | 7.91% | 3.80% | 2.40% | 2.13% | 1.75% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,820,000K ÷ $23,001,000K
= 7.91%
Consolidated Edison Inc's return on assets (ROA) has shown a positive trend over the years. The company's ROA increased from 1.75% on December 31, 2020, to 7.91% on December 31, 2024. This indicates that the company has been more effective in generating profits from its assets over the years.
The steady improvement in ROA reflects the company's ability to utilize its assets efficiently to generate earnings. A higher ROA suggests that Consolidated Edison Inc is generating more profit relative to its total assets, which is a positive sign for investors and indicates strong operational performance.
It is important to note that the significant increase in ROA from 3.80% in December 31, 2023, to 7.91% in December 31, 2024, signifies a substantial improvement in the company's asset utilization efficiency. This increase may be attributed to various factors such as better cost management, revenue growth, or strategic asset allocation.
Overall, the increasing trend in Consolidated Edison Inc's ROA indicates improved profitability and efficiency in asset utilization, which can be seen as a positive indicator for the company's financial health and operational performance.
Peer comparison
Dec 31, 2024