Enovis Corp (ENOV)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -33,261 | -13,292 | 71,657 | 42,625 | -527,646 |
| Total assets | US$ in thousands | 4,509,330 | 4,273,250 | 8,515,910 | 7,351,550 | 7,386,830 |
| ROA | -0.74% | -0.31% | 0.84% | 0.58% | -7.14% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-33,261K ÷ $4,509,330K
= -0.74%
Based on the data provided, Enovis Corp's return on assets (ROA) has been fluctuating over the past five years. ROA indicates the company's efficiency in generating profits from its assets.
In 2019, the company had a significantly negative ROA of -7.14%, suggesting that its assets were not effectively utilized to generate profits, indicating potential operational inefficiencies or poor asset management.
However, there was a notable improvement in ROA in the following years, with positive ROA figures recorded. In 2020, the ROA was 0.58%, followed by a further increase to 0.84% in 2021. This improvement indicates that Enovis Corp was able to better utilize its assets to generate profits during these years.
However, the trend reversed in the subsequent years, with a decline in ROA. In 2022, the ROA decreased to -0.31%, indicating a decrease in profitability relative to its asset base compared to the previous year. This downward trend continued in 2023, with a further decline to -0.74%, indicating that the company's profitability relative to its assets deteriorated significantly.
Overall, Enovis Corp's ROA trend indicates fluctuations in profitability relative to its asset base over the past five years, with a mix of positive and negative figures. The company needs to focus on enhancing its asset utilization efficiency to improve its profitability in the future.
Peer comparison
Dec 31, 2023