FMC Corporation (FMC)

Return on assets (ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Net income (ttm) US$ in thousands 340,900 1,455,700 1,387,400 1,122,800 1,321,500 496,900 621,400 725,100 736,500 655,700 692,600 761,300 736,500 592,900 546,400 527,900 551,500 498,800 477,800 467,900
Total assets US$ in thousands 11,653,300 12,218,700 12,130,700 11,978,400 11,926,200 10,956,400 11,951,700 11,732,100 11,171,300 10,764,700 11,044,200 10,904,800 10,581,300 10,410,200 10,942,100 10,423,300 10,186,400 9,772,200 9,993,700 10,189,200
ROA 2.93% 11.91% 11.44% 9.37% 11.08% 4.54% 5.20% 6.18% 6.59% 6.09% 6.27% 6.98% 6.96% 5.70% 4.99% 5.06% 5.41% 5.10% 4.78% 4.59%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $340,900K ÷ $11,653,300K
= 2.93%

The Return on Assets (ROA) is a financial metric that measures a company's efficiency in generating profits relative to its total assets. Analyzing the ROA trend of FMC Corporation over the past few quarters reveals fluctuations in the company's ability to utilize its assets effectively.

Beginning in March 2020 with an ROA of 4.59%, FMC Corporation saw marginal improvements in the subsequent quarters, reaching a peak of 6.98% in March 2022. This upward trend indicated that the company was becoming more efficient in using its assets to generate profits.

However, from June 2022 to December 2024, FMC Corporation experienced a significant decline in ROA, dropping to as low as 2.93% by the end of December 2024. This decrease suggests a potential decrease in profitability relative to the assets employed, signaling inefficiencies in asset utilization during this period.

The spike in ROA to 11.08% in December 2023 followed by a sustained high level above 9% until September 2024 may indicate a period of improved profitability relative to assets, potentially driven by strategic decisions or market conditions during that time frame.

Overall, the fluctuating ROA of FMC Corporation suggests varying levels of efficiency in generating profits from its assets over the analyzed period. It is important for investors and stakeholders to monitor this metric closely, as it provides insights into the company's operational performance and financial health.