Edison International (EIX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,546,000 | 1,407,000 | 824,000 | 925,000 | 871,000 |
| Total assets | US$ in thousands | 22,067,000 | 81,758,000 | 78,041,000 | 74,745,000 | 69,372,000 |
| ROA | 7.01% | 1.72% | 1.06% | 1.24% | 1.26% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,546,000K ÷ $22,067,000K
= 7.01%
The Return on Assets (ROA) for Edison International has fluctuated over the five-year period provided. As of December 31, 2020, the ROA stood at 1.26%, showing a slight decrease to 1.24% by the end of 2021. In 2022, the ROA experienced a further decline to 1.06%. However, in the following year, there was a notable improvement in ROA, reaching 1.72% by December 31, 2023. The most significant increase was observed in 2024, with the ROA surging to 7.01%.
The fluctuation in ROA indicates varying levels of efficiency in generating profits from Edison International's assets over the years. The declining trend from 2020 to 2022 may suggest potential challenges in asset utilization or profitability, but the considerable improvement in 2023 and substantial increase in 2024 are positive signs of enhanced performance in utilizing assets to generate returns.
It is essential for Edison International to continue monitoring and managing its asset efficiency to sustain and build on the significant improvement in ROA observed in the latest fiscal year. By effectively leveraging its assets, the company can drive profitability and create value for its stakeholders.
Peer comparison
Dec 31, 2024