Element Solutions Inc (ESI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 244,200 | 118,100 | 187,200 | 203,300 | 75,700 |
| Total assets | US$ in thousands | 4,873,900 | 4,974,100 | 4,903,700 | 5,138,400 | 4,483,400 |
| ROA | 5.01% | 2.37% | 3.82% | 3.96% | 1.69% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $244,200K ÷ $4,873,900K
= 5.01%
The analysis of Element Solutions Inc.'s return on assets (ROA) over the specified period reveals notable fluctuations and an overall upward trend. As of December 31, 2020, the company's ROA stood at 1.69%, indicating a relatively modest efficiency in generating profits from its assets. By December 31, 2021, there was a significant improvement, with the ROA nearly doubling to 3.96%, signifying enhanced asset utilization and profitability during that year. In 2022, the ROA slightly declined to 3.82%, suggesting a marginal reduction in asset efficiency, although it remained significantly higher than the 2020 level. The following year, 2023, saw a further decrease to 2.37%, reflecting a temporary dip in profitability relative to assets. However, in 2024, the ROA demonstrated a strong rebound, reaching 5.01%, which marks a substantial increase and indicates improved profitability and effective asset management.
Overall, the trajectory suggests that Element Solutions Inc. experienced phases of growth in asset efficiency, with the most recent data indicating a robust return on assets. The fluctuations may be attributable to varying operational conditions or investments, but the upward movement in 2024 points toward favorable improvements in profitability relative to asset base.
Peer comparison
Dec 31, 2024