Howmet Aerospace Inc (HWM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,155,000 | 765,000 | 469,000 | 258,000 | 261,000 |
| Total assets | US$ in thousands | 10,519,000 | 10,428,000 | 10,255,000 | 10,219,000 | 11,446,000 |
| ROA | 10.98% | 7.34% | 4.57% | 2.52% | 2.28% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,155,000K ÷ $10,519,000K
= 10.98%
Based on the data provided, Howmet Aerospace Inc's return on assets (ROA) has shown a positive trend over the period from December 31, 2020, to December 31, 2024. The ROA increased from 2.28% in 2020 to 10.98% in 2024, reflecting an improving efficiency in generating profit from its assets.
The steady growth in ROA indicates that the company has been effectively utilizing its assets to generate earnings over the years. This could be attributed to better operational efficiency, effective cost management, strategic investments, or improved revenue generation.
A higher ROA indicates that the company is generating more profit relative to its total assets, which is a positive sign for investors and stakeholders. It signifies that the company is making efficient use of its resources to generate earnings and create value for its shareholders.
Overall, the increasing trend in Howmet Aerospace Inc's ROA demonstrates improving profitability and asset utilization, which could contribute positively to the company's financial performance and create confidence among investors regarding the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024