Hasbro Inc (HAS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,489,300 | 203,500 | 428,700 | 222,500 | 520,500 |
| Total assets | US$ in thousands | 6,540,900 | 9,295,900 | 10,037,800 | 10,818,400 | 8,855,600 |
| ROA | -22.77% | 2.19% | 4.27% | 2.06% | 5.88% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-1,489,300K ÷ $6,540,900K
= -22.77%
Hasbro, Inc.'s return on assets (ROA) has shown significant fluctuations over the past five years. In 2019, the ROA was at its highest point, standing at 5.88%. However, there has been a downward trend since then. In 2020, the ROA decreased to 2.06%, further dropping to 4.27% in 2021, before experiencing a sharp decline to 2.19% in 2022. Notably, in 2023, the ROA turned negative at -22.77%, indicating that the company's net income generated by its assets was insufficient to cover its total asset base.
The negative ROA in 2023 raises concerns about Hasbro, Inc.'s operational efficiency and profitability. It suggests that the company's assets are not effectively utilized to generate profits. Further analysis is necessary to understand the factors contributing to this negative ROA and to assess the company's overall financial health and performance.