Kaiser Aluminum Corporation (KALU)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 46,800 | 47,200 | -29,600 | -18,500 | 28,800 |
| Total assets | US$ in thousands | 2,314,900 | 2,267,400 | 2,288,800 | 2,422,400 | 1,864,700 |
| ROA | 2.02% | 2.08% | -1.29% | -0.76% | 1.54% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $46,800K ÷ $2,314,900K
= 2.02%
The return on assets (ROA) of Kaiser Aluminum Corporation has experienced fluctuations over the past five years based on the provided data.
As of December 31, 2020, the ROA was at 1.54%, indicating that the company generated a profit of 1.54 cents for every dollar of assets it owned. However, by December 31, 2021, the ROA turned negative at -0.76%, suggesting that the company was not efficiently utilizing its assets to generate profits during that period.
The trend continued into the following years, with ROA declining further to -1.29% by December 31, 2022. This negative ROA indicates that the company's assets were not generating sufficient profits, potentially signaling financial challenges or inefficiencies in operations.
There was a notable turnaround by December 31, 2023, when the ROA improved significantly to 2.08%. This uptick suggests that Kaiser Aluminum Corporation was able to enhance its asset utilization and profitability during that year.
The positive trend continued into December 31, 2024, with the ROA at 2.02%, indicating continued improvement in the company's ability to generate profits from its assets.
Overall, the analysis of Kaiser Aluminum Corporation's ROA reflects a mix of performance fluctuations, including periods of inefficiency and improved asset utilization. The company's ability to maintain and potentially increase its ROA in the future will be crucial for its financial health and sustainability.
Peer comparison
Dec 31, 2024