Itron Inc (ITRI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 96,923 | -9,732 | -81,255 | -57,955 | 49,006 |
| Total assets | US$ in thousands | 2,604,260 | 2,378,080 | 2,393,790 | 2,607,020 | 2,707,840 |
| ROA | 3.72% | -0.41% | -3.39% | -2.22% | 1.81% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $96,923K ÷ $2,604,260K
= 3.72%
The return on assets (ROA) of Itron Inc. has shown variability over the past five years. In 2023, the ROA improved significantly to 3.72%, indicating that the company generated a higher return on its assets compared to the previous years. This could be a positive sign of better asset utilization or profitability.
However, in 2022 and 2021, the company had negative ROA figures of -0.41% and -3.39% respectively, suggesting that Itron Inc. struggled to generate profits relative to its total assets during those years. This could raise concerns about the company's efficiency in using its assets to generate earnings.
In 2020 and 2019, the ROA was also negative at -2.22% and 1.81% respectively. The negative ROA figures in these years indicate that the company faced challenges in profitability and asset utilization.
Overall, with fluctuations in ROA over the years, it is essential for Itron Inc. to focus on improving its asset management and profitability to drive sustainable growth and enhance shareholder value.
Peer comparison
Dec 31, 2023