IPG Photonics Corporation (IPGP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -181,526 | 218,878 | 109,909 | 278,416 | 159,572 |
| Total assets | US$ in thousands | 2,289,260 | 2,698,900 | 2,743,280 | 3,170,540 | 2,935,700 |
| ROA | -7.93% | 8.11% | 4.01% | 8.78% | 5.44% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-181,526K ÷ $2,289,260K
= -7.93%
IPG Photonics Corporation's return on assets (ROA) has shown fluctuating trends over the past five years. The ROA increased from 5.44% in December 2020 to 8.78% in December 2021, indicating improved efficiency in generating profits from its assets. However, there was a decline in ROA to 4.01% in December 2022, which suggests a potential decrease in asset utilization or profitability.
Subsequently, the ROA rebounded to 8.11% in December 2023, demonstrating a recovery in the company's ability to generate returns from its assets. However, there was a significant downturn in December 2024 with a negative ROA of -7.93%, which could signal operational challenges or asset impairment impacting profitability.
Overall, IPG Photonics Corporation's ROA performance has been mixed, with periods of both improvement and decline. It is important for the company to carefully monitor and manage its asset efficiency and profitability to sustain long-term financial health and shareholder value.
Peer comparison
Dec 31, 2024