ESAB Corp (ESAB)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 264,842 | 203,730 | 223,747 | 235,110 | 157,414 |
| Total assets | US$ in thousands | 4,033,980 | 3,828,630 | 3,754,020 | 3,461,260 | 3,385,830 |
| ROA | 6.57% | 5.32% | 5.96% | 6.79% | 4.65% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $264,842K ÷ $4,033,980K
= 6.57%
Based on the provided data, ESAB Corp's return on assets (ROA) has been fluctuating over the past five years. In 2020, the ROA was 4.65%, indicating that the company generated a profit of 4.65 cents for every dollar of assets it had. By the end of 2021, the ROA increased significantly to 6.79%, suggesting improved efficiency in asset utilization and profitability.
However, in 2022, the ROA slightly decreased to 5.96%, possibly due to changes in the company's operations or external factors affecting its performance. The ROA further declined to 5.32% by the end of 2023 before rebounding to 6.57% in 2024. This fluctuation in ROA indicates that ESAB Corp's ability to generate profits from its assets has been somewhat volatile in recent years.
Overall, while the company experienced fluctuations in its ROA, it has shown an upward trend in recent years, which could be a positive indicator of improved asset management and profitability. Further analysis of the company's financial performance and factors influencing its ROA would provide additional insights into its overall financial health and efficiency in utilizing its assets.
Peer comparison
Dec 31, 2024