Innospec Inc (IOSP)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 33,200 139,000 133,000 93,000 28,600
Total assets US$ in thousands 1,734,700 1,707,400 1,603,700 1,570,900 1,397,400
ROA 1.91% 8.14% 8.29% 5.92% 2.05%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $33,200K ÷ $1,734,700K
= 1.91%

Based on the data provided, the return on assets (ROA) of Innospec Inc has experienced fluctuations over the past five years. The ROA increased from 2.05% as of December 31, 2020, to 5.92% by December 31, 2021, indicating an improvement in the company's ability to generate earnings relative to its total assets.

Furthermore, the ROA continued to rise, reaching 8.29% by December 31, 2022, and maintaining a relatively high level at 8.14% by December 31, 2023. These figures suggest that the company has been effectively utilizing its assets to generate profits during these periods.

However, there was a noticeable decline in the ROA to 1.91% by December 31, 2024. This drop may indicate a decrease in the efficiency of asset utilization or a decrease in profitability relative to the total assets held by the company.

In conclusion, the trend in Innospec Inc's ROA shows some variability over the years, with periods of improvement followed by a decline. It is essential for stakeholders to monitor these fluctuations closely to understand the company's performance in generating profits from its assets.