Exelixis Inc (EXEL)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 521,267 207,765 182,282 231,063 111,781
Total assets US$ in thousands 2,947,690 2,942,360 3,071,490 2,616,240 2,137,330
ROA 17.68% 7.06% 5.93% 8.83% 5.23%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $521,267K ÷ $2,947,690K
= 17.68%

Exelixis Inc's Return on Assets (ROA) has shown variability over the past five years. As of December 31, 2020, the ROA stood at 5.23%, indicating that the company generated 5.23 cents of profit for every dollar of assets it possessed. Over the next two years, there was a significant improvement in ROA, reaching 8.83% by December 31, 2021. This increase suggests that Exelixis Inc became more efficient in utilizing its assets to generate profits.

However, by December 31, 2022, the ROA dropped to 5.93%, signaling a slight decline in the company's ability to generate earnings from its assets. The trend reversed in the following year, with ROA increasing to 7.06% by December 31, 2023, indicating improved asset utilization efficiency.

The most notable change in ROA occurred by December 31, 2024, where it surged to 17.68%. This significant increase demonstrates a substantial improvement in Exelixis Inc's profitability relative to its assets, reflecting potentially better management of resources or significant income growth.

Overall, Exelixis Inc's ROA has displayed fluctuations, with periods of both improvement and decline. It is important for investors and analysts to closely monitor these trends to assess the company's operational efficiency and profitability.