Equifax Inc (EFX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 545,300 | 696,200 | 744,200 | 520,100 | -384,100 |
| Total assets | US$ in thousands | 12,280,000 | 11,547,900 | 11,040,900 | 9,611,800 | 7,909,000 |
| ROA | 4.44% | 6.03% | 6.74% | 5.41% | -4.86% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $545,300K ÷ $12,280,000K
= 4.44%
Equifax, Inc.'s return on assets (ROA) has shown fluctuation over the five-year period from 2019 to 2023. In 2019, the company reported a negative ROA of -5.04%, indicating that its assets were not effectively utilized to generate profits during that year. However, the following years saw improvement in ROA, with 2021 recording the highest ROA of 6.74%. This suggests that Equifax improved its efficiency in utilizing its assets to generate profits in 2021 compared to the previous years.
In 2022 and 2023, Equifax's ROA declined to 6.03% and 4.44% respectively, indicating a slight drop in profitability relative to 2021. While the ROA decreased in these years, it remained positive, indicating that Equifax continued to generate profits from its assets despite the lower efficiency compared to 2021.
Overall, the trend in Equifax's ROA suggests that the company has made efforts to enhance its asset utilization efficiency in recent years, leading to improved profitability. However, the slight decline in ROA in 2022 and 2023 may require further assessment to determine the underlying causes and potential strategies for maintaining or improving asset profitability in the future.