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