Eastman Chemical Company (EMN)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 894,000 | 793,000 | 857,000 | 478,000 | 759,000 |
| Total assets | US$ in thousands | 14,633,000 | 14,667,000 | 15,519,000 | 16,083,000 | 16,008,000 |
| ROA | 6.11% | 5.41% | 5.52% | 2.97% | 4.74% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $894,000K ÷ $14,633,000K
= 6.11%
Eastman Chemical Co's return on assets (ROA) has shown a fluctuating trend over the past five years. In 2023, the ROA increased to 6.11%, indicating that the company generated 6.11 cents of profit for every dollar of assets it owns. This improvement from the previous year's ROA of 5.41% suggests that the company may have become more efficient in utilizing its assets to generate profit.
Comparing 2023 to earlier years, Eastman Chemical Co's ROA was 5.52% in 2021 and 2.97% in 2020, indicating a significant improvement in asset utilization. However, the ROA in 2023 is still lower than the 2019 ROA of 4.74%.
Overall, Eastman Chemical Co's ROA performance indicates a positive trend in recent years, with a notable improvement in 2023. Further analysis would be needed to determine the specific factors driving this improved asset utilization and profitability.
Peer comparison
Dec 31, 2023