Howmet Aerospace Inc (HWM)
Return on assets (ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 765,000 | 640,000 | 532,000 | 486,000 | 469,000 | 435,000 | 382,000 | 309,000 | 258,000 | 287,000 | 296,000 | 126,000 | 261,000 | 464,000 | 523,000 | 498,000 | 470,000 | 379,000 | 445,000 | 686,000 |
| Total assets | US$ in thousands | 10,428,000 | 10,166,000 | 10,233,000 | 10,174,000 | 10,255,000 | 9,929,000 | 10,052,000 | 10,129,000 | 10,219,000 | 10,357,000 | 10,379,000 | 10,971,000 | 11,443,000 | 11,339,000 | 11,363,000 | 18,465,000 | 17,562,000 | 17,484,000 | 17,913,000 | 18,361,000 |
| ROA | 7.34% | 6.30% | 5.20% | 4.78% | 4.57% | 4.38% | 3.80% | 3.05% | 2.52% | 2.77% | 2.85% | 1.15% | 2.28% | 4.09% | 4.60% | 2.70% | 2.68% | 2.17% | 2.48% | 3.74% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $765,000K ÷ $10,428,000K
= 7.34%
To analyze Howmet Aerospace Inc's return on assets (ROA) based on the provided data, we observe an increasing trend in ROA over the past eight quarters. The ROA has gradually improved from 3.03% in Q1 2022 to 7.32% in Q4 2023, indicating that the company's ability to generate profit from its assets has strengthened over time.
A rising ROA suggests that Howmet Aerospace Inc is becoming more efficient in utilizing its assets to generate earnings. This improvement could be attributed to effective cost management, revenue growth, operational efficiency, or strategic investments that are yielding returns.
Overall, the consistent uptrend in ROA indicates positive financial performance and efficiency in asset utilization by Howmet Aerospace Inc. Investors and stakeholders may view this trend favorably as it signifies a more profitable use of the company's resources.
Peer comparison
Dec 31, 2023