Genpact Limited (G)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 631,255 | 353,404 | 369,448 | 308,276 | 304,881 |
| Total assets | US$ in thousands | 4,805,710 | 4,588,810 | 4,975,270 | 4,873,510 | 4,454,180 |
| ROA | 13.14% | 7.70% | 7.43% | 6.33% | 6.84% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $631,255K ÷ $4,805,710K
= 13.14%
Genpact Ltd's return on assets (ROA) has shown fluctuating trends over the past five years. The company's ROA was relatively stable from 2019 to 2021, ranging between 6.33% and 6.84%. However, there was a notable increase in ROA in 2022, reaching 7.70%. This improvement was further boosted in 2023, with ROA climbing to 13.14%.
The significant rise in ROA in 2022 and 2023 suggests that Genpact Ltd has been able to generate higher profits relative to its total assets, indicating improved asset utilization and efficiency in generating earnings. This could be attributed to factors such as effective cost management, enhanced operational performance, or increased revenue generation.
Overall, the upward trend in ROA over the past two years reflects positively on Genpact Ltd's financial performance and indicates a potential strengthening of the company's asset management and profitability metrics. However, further analysis and consideration of other financial indicators are necessary to provide a comprehensive assessment of the company's overall financial health and operational effectiveness.
Peer comparison
Dec 31, 2023