Hexcel Corporation (HXL)

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	105,700	160,900	149,000	151,200	126,300	108,200	90,400	47,900	16,100	-22,200	-21,500	-24,700	31,700	124,300	194,900	276,800	306,600	299,500	299,300	287,200
Total assets	US$ in thousands	2,918,500	2,846,300	2,921,900	2,907,300	2,837,300	2,775,700	2,819,400	2,853,500	2,819,400	2,872,600	2,917,400	2,893,500	2,917,800	2,972,100	3,222,500	3,433,300	3,128,600	3,155,200	3,195,100	3,166,000
ROA		3.62%	5.65%	5.10%	5.20%	4.45%	3.90%	3.21%	1.68%	0.57%	-0.77%	-0.74%	-0.85%	1.09%	4.18%	6.05%	8.06%	9.80%	9.49%	9.37%	9.07%

December 31, 2023 calculation

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

To analyze Hexcel Corp.'s return on assets (ROA) based on the provided data:

1. Trend Analysis:
- The ROA has shown a generally increasing trend throughout the quarters, starting at 1.68% in Q1 2022 and reaching a peak of 5.65% in Q3 2023. This indicates a positive progression in the company's efficiency in generating profits relative to its total assets.

2. Average ROA:
- Calculating the average ROA for the period, we find that the company's average ROA is approximately 4.16%.

3. Fluctuations:
- There are fluctuations in the ROA values over the quarters, with some variability between consecutive quarters. Notably, Q4 2023 saw a decrease from the previous quarter, dropping to 3.62%.

4. Performance Evaluation:
- Hexcel Corp.'s ROA performance indicates that, on average, the company generates $4.16 in profit for every $100 of total assets. While the increasing trend suggests improved asset utilization efficiency, the fluctuations in ROA values should be further investigated to understand the underlying reasons for the changes.

In conclusion, the analysis of Hexcel Corp.'s ROA highlights a generally positive trend in asset utilization efficiency over the quarters, with some fluctuations that may warrant additional scrutiny to assess the sustainability of the performance.