Howmet Aerospace Inc (HWM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 765,000 | 469,000 | 258,000 | 261,000 | 470,000 |
| Total assets | US$ in thousands | 10,428,000 | 10,255,000 | 10,219,000 | 11,443,000 | 17,562,000 |
| ROA | 7.34% | 4.57% | 2.52% | 2.28% | 2.68% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $765,000K ÷ $10,428,000K
= 7.34%
Howmet Aerospace Inc's return on assets (ROA) has demonstrated an upward trend over the past five years. The ROA increased from 2.71% in 2019 to 7.32% in 2023. This indicates that the company is generating a higher level of profit relative to its total assets in recent years.
The significant improvement in ROA suggests that Howmet Aerospace has been more efficient in utilizing its assets to generate profit. This could be attributed to strategic management decisions, operational efficiencies, or effective cost control measures implemented by the company.
Overall, the increasing trend in ROA reflects positively on the company's financial performance and asset management capabilities, indicating a potential to create value for shareholders and stakeholders. It also suggests improved overall operational performance and profitability for Howmet Aerospace Inc.
Peer comparison
Dec 31, 2023