Kadant Inc (KAI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 111,598 | 116,069 | 120,928 | 84,043 | 55,196 |
| Total assets | US$ in thousands | 1,430,340 | 1,175,660 | 1,149,880 | 1,132,210 | 927,571 |
| ROA | 7.80% | 9.87% | 10.52% | 7.42% | 5.95% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $111,598K ÷ $1,430,340K
= 7.80%
Based on the provided data, Kadant Inc's Return on Assets (ROA) has demonstrated a positive trend over the years, increasing from 5.95% as of December 31, 2020, to 7.42% by December 31, 2021 and further to 10.52% by December 31, 2022. However, there was a slight decrease in ROA to 9.87% by the end of 2023 and a further decline to 7.80% as of December 31, 2024.
The increase in ROA from 2020 to 2022 indicates that Kadant Inc was able to generate more profit relative to its total assets during this period. The subsequent decrease in 2023 and 2024 suggests a possible decline in the company's efficiency in generating profits from its assets.
Overall, while Kadant Inc has shown variability in its ROA over the years, it is important for stakeholders to monitor this metric closely to assess the company's ability to effectively utilize its assets to generate profits.
Peer comparison
Dec 31, 2024