FMC Corporation (FMC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,321,500 | 736,500 | 739,600 | 552,400 | 477,400 |
| Total assets | US$ in thousands | 11,926,200 | 11,171,300 | 10,673,100 | 10,186,400 | 9,872,700 |
| ROA | 11.08% | 6.59% | 6.93% | 5.42% | 4.84% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,321,500K ÷ $11,926,200K
= 11.08%
The return on assets (ROA) for FMC Corp. has shown a consistent improvement over the past five years, reflecting the company's efficiency in generating profits from its assets. The ROA increased from 4.82% in 2019 to 11.06% in 2023, indicating a positive trend in the company's asset utilization and profitability.
The ROA for FMC Corp. was 6.58% in 2022 and 6.94% in 2021, demonstrating a stable performance during these years. This suggests that the company was able to maintain a relatively efficient use of its assets to generate earnings.
The upward trajectory of FMC Corp.'s ROA indicates that the company has been successful in increasing profitability relative to its asset base. This improvement could be attributed to better operational efficiency, cost management, or strategic investments that have positively impacted the company's bottom line.
Overall, FMC Corp.'s ROA performance highlights the company's ability to generate returns from its assets and underscores its financial strength and management effectiveness.
Peer comparison
Dec 31, 2023