Forward Air Corporation (FWRD)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -816,969 | 167,351 | 193,191 | 105,859 | 52,767 |
| Total assets | US$ in thousands | 2,802,640 | 2,979,530 | 1,208,080 | 1,117,820 | 1,047,770 |
| ROA | -29.15% | 5.62% | 15.99% | 9.47% | 5.04% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-816,969K ÷ $2,802,640K
= -29.15%
The return on assets (ROA) for Forward Air Corporation has varied significantly over the past five years, ranging from a high of 15.99% on December 31, 2022, to a low of -29.15% on December 31, 2024. This indicates fluctuations in the company's ability to generate profits relative to its total assets.
The ROA increased from 5.04% in 2020 to 9.47% in 2021, reflecting improved asset utilization and profitability. However, it dropped sharply in 2024, potentially indicating financial challenges or inefficiencies in asset management.
It is crucial for the company to closely monitor its ROA performance and analyze the reasons behind the drastic fluctuations to make informed strategic decisions and enhance overall financial performance and sustainability over time.
Peer comparison
Dec 31, 2024