Edison International (EIX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,407,000 | 824,000 | 925,000 | 739,000 | 1,284,000 |
| Total assets | US$ in thousands | 81,758,000 | 78,041,000 | 74,745,000 | 69,372,000 | 64,382,000 |
| ROA | 1.72% | 1.06% | 1.24% | 1.07% | 1.99% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,407,000K ÷ $81,758,000K
= 1.72%
The return on assets (ROA) for Edison International has fluctuated over the past five years. In 2023, the ROA stood at 1.46%, indicating that the company generated $0.0146 in net income for every dollar of assets it holds. This represents an improvement from the previous year's ROA of 0.78%. The increase suggests that the company was more efficient in utilizing its assets to generate profits in 2023 compared to 2022.
Looking back further, the ROA in 2021 and 2020 was 1.02% and 1.07%, respectively. These figures show a relatively stable performance in terms of asset utilization during those years. However, there was a noticeable decrease in ROA in 2019, where it dropped to 1.99%. This could indicate a period of less efficient asset management or lower profitability compared to the surrounding years.
Overall, analyzing the trend in ROA for Edison International reveals fluctuations in the company's ability to generate profits from its assets over the past five years. This metric is crucial for assessing the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023