Evergy Inc. Common Stock (EVRG)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	731,300	752,700	879,700	618,300	669,900
Total assets	US$ in thousands	30,976,100	29,489,900	28,520,500	27,114,800	25,975,900
ROA		2.36%	2.55%	3.08%	2.28%	2.58%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $731,300K ÷ $30,976,100K
= 2.36%

Based on the historical data provided for Evergy Inc's return on assets (ROA), the company has displayed varying performance levels over the past five years. ROA measures the efficiency of a company in generating profits from its assets.

In 2023, Evergy Inc's ROA stood at 2.36%, showing a slight decrease from the previous year's 2.55%. This decline could indicate a decrease in the company's ability to generate profits relative to its asset base. However, it is essential to consider other factors that may have influenced this decline.

Comparing 2023 to 2021, there was a noticeable drop in ROA from 3.08% to 2.36%. This decrease could suggest a decline in profitability relative to the company's asset base, which may raise concerns about the efficiency of asset utilization during this period.

Furthermore, the ROA for 2023 is also lower than the ratios reported in 2019 and 2020, which were 2.58% and 2.28%, respectively. This trend indicates a fluctuating performance in terms of generating profits from the company's assets over the past five years.

Overall, the trend in Evergy Inc's ROA shows some fluctuations, with the ratio experiencing both increases and decreases over the years. Analyzing the reasons behind these variations and identifying strategies to improve asset efficiency could be crucial for enhancing the company's profitability in the future.