Graham Holdings Co (GHC)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 724,634 205,288 67,079 352,075 300,365
Total assets US$ in thousands 7,677,200 7,187,730 6,582,220 7,425,520 6,444,120
ROA 9.44% 2.86% 1.02% 4.74% 4.66%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $724,634K ÷ $7,677,200K
= 9.44%

The return on assets (ROA) of Graham Holdings Co has experienced fluctuations over the past five years. It stood at 4.66% on December 31, 2020, slightly increasing to 4.74% by December 31, 2021. However, there was a noticeable decline in ROA to 1.02% on December 31, 2022. Subsequently, the ROA improved to 2.86% on December 31, 2023, showing signs of recovery. The most significant increase was observed on December 31, 2024, where the ROA surged to 9.44%, indicating a substantial improvement in the company's ability to generate profit relative to its total assets. The fluctuating trend in ROA suggests varying levels of efficiency in utilizing assets to generate earnings, highlighting the importance of consistent monitoring and assessment of the company's performance.