Kaiser Aluminum Corporation (KALU)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 47,200 | -29,600 | -18,500 | 28,800 | 62,000 |
| Total assets | US$ in thousands | 2,267,400 | 2,288,800 | 2,422,400 | 1,864,700 | 1,526,200 |
| ROA | 2.08% | -1.29% | -0.76% | 1.54% | 4.06% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $47,200K ÷ $2,267,400K
= 2.08%
Kaiser Aluminum Corp's return on assets (ROA) has exhibited fluctuations over the past five years. In 2023, the ROA improved to 2.08%, indicating that the company generated a higher return relative to its total assets compared to the previous year. However, in 2022, the ROA was negative at -1.29%, suggesting that the company experienced a loss in generating returns from its assets.
Furthermore, in 2021, the ROA was also negative at -0.76%, reflecting continued challenges in generating profits from its asset base. The year 2020 saw a positive ROA of 1.54%, although it was lower than the level achieved in 2019 when the ROA was 4.06%, indicating a decline in the company's ability to generate returns from its assets over this period.
Overall, Kaiser Aluminum Corp's ROA has shown variability, with fluctuations in profitability relative to its asset base. It is essential for the company to consistently focus on improving efficiency and profitability to enhance its return on assets in the future.
Peer comparison
Dec 31, 2023