Hexcel Corporation (HXL)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	105,700	126,300	16,100	31,700	306,600
Total assets	US$ in thousands	2,918,500	2,837,300	2,819,400	2,917,800	3,128,600
ROA		3.62%	4.45%	0.57%	1.09%	9.80%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $105,700K ÷ $2,918,500K
= 3.62%

Hexcel Corp.'s return on assets (ROA) has exhibited fluctuating trends over the past five years. In 2023, the ROA decreased to 3.62% from 4.45% in 2022, indicating a decline in the company's ability to generate profits from its assets. The ROA was notably lower in 2021 at 0.57%, showing a significant decrease in asset efficiency compared to previous years. The improvement in 2022 compared to 2021 suggests some recovery in utilizing assets to generate earnings. However, the substantial drop in 2019 from 9.80% to 1.09% in 2020 and the subsequent improvement highlight volatility in Hexcel Corp.'s asset productivity. Overall, the trend in Hexcel Corp.'s ROA indicates varying levels of effectiveness in utilizing assets to generate profits over the past five years.