Howmet Aerospace Inc (HWM)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,155,000 | 1,077,000 | 933,000 | 860,000 | 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 |
| Total assets | US$ in thousands | 10,519,000 | 10,558,000 | 10,679,000 | 10,410,000 | 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 | 11,446,000 | 11,339,000 | 11,363,000 | 18,465,000 |
| ROA | 10.98% | 10.20% | 8.74% | 8.26% | 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,155,000K ÷ $10,519,000K
= 10.98%
The return on assets (ROA) is a financial ratio that measures a company's profitability by evaluating its ability to generate earnings from its assets. For Howmet Aerospace Inc, the ROA has fluctuated over the quarters mentioned in the data provided.
Starting at 2.70% in March 2020, the ROA saw an increase to 4.60% by June 2020. However, it slightly decreased to 4.09% by September 2020. The ratio then experienced a significant drop to 2.28% by December 2020.
There was a further decline to 1.15% by March 2021, followed by a gradual recovery to 2.85% by June 2021 and 2.77% by September 2021. The ROA continued to improve, reaching 2.52% by December 2021 and 3.05% by March 2022.
Subsequently, the ROA showed consistent growth, reaching 3.80% by June 2022 and 4.38% by September 2022. The ratio continued to increase, reaching 4.57% by December 2022 and 4.78% by March 2023.
The trend of improving ROA persisted as it reached 5.20% by June 2023, 6.30% by September 2023, and 7.34% by December 2023. Notably, the ROA showed significant growth to 8.26% by March 2024, 8.74% by June 2024, and 10.20% by September 2024, indicating enhanced asset utilization and profitability for the company.
By the end of December 2024, Howmet Aerospace Inc achieved a robust ROA of 10.98%, reflecting a highly favorable performance in generating earnings relative to its assets in that period. The increasing trend in ROA over the quarters showcases the company's efficiency in utilizing its assets to generate profits, which is a positive indicator for investors and stakeholders.
Peer comparison
Dec 31, 2024