Geo Group Inc (GEO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 70 | 107,325 | 171,813 | 77,418 | 113,032 |
| Total assets | US$ in thousands | 3,632,080 | 3,696,410 | 3,760,380 | 4,537,410 | 4,460,130 |
| ROA | 0.00% | 2.90% | 4.57% | 1.71% | 2.53% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $70K ÷ $3,632,080K
= 0.00%
Geo Group Inc's return on assets (ROA) has shown some fluctuations over the past five years.
In December 2020, the ROA stood at 2.53%, indicating that the company generated $2.53 in profit for every $100 of assets it had during that period. However, by the end of 2021, the ROA decreased to 1.71%, suggesting a decline in the company's efficiency in generating profits from its assets.
The following year, in December 2022, the ROA significantly improved to 4.57%, signaling a substantial increase in profitability relative to its asset base. This could indicate that Geo Group Inc had successfully utilized its assets more effectively to generate higher returns.
By December 2023, the ROA slightly decreased to 2.90%, showing some moderation in the company's profitability compared to the previous year.
Surprisingly, as of December 2024, the ROA dropped to 0.00%, which could be a cause for concern as it indicates that the company is currently not generating any profit from its assets. This sudden decline in ROA may require further investigation to understand the factors contributing to this significant decrease.
Overall, Geo Group Inc's ROA has exhibited fluctuations over the years, with periods of improvement and decline. It is important for investors and stakeholders to closely monitor the company's performance and financial management practices to ensure sustainable profitability and efficient asset utilization in the future.
Peer comparison
Dec 31, 2024