Kirby Corporation (KEX)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	222,935	122,291	-246,954	-272,546	142,347
Total assets	US$ in thousands	5,722,200	5,554,920	5,399,060	5,924,170	6,079,100
ROA		3.90%	2.20%	-4.57%	-4.60%	2.34%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $222,935K ÷ $5,722,200K
= 3.90%

Kirby Corp.'s return on assets (ROA) has shown varying trends over the past five years. In 2023, the ROA improved significantly to 3.89%, indicating that the company generated a higher level of profit relative to its total assets compared to the previous year. This suggests that Kirby Corp. efficiently utilized its assets to generate earnings.

In contrast, in 2022 and 2021, the ROA was positive but relatively lower at 2.20% and -4.57% respectively. The negative ROA in 2021 indicates that the company incurred losses that exceeded the value of its assets for that financial year.

Furthermore, in 2020 and 2019, Kirby Corp. experienced negative ROA figures of -4.60% and 2.34% respectively. The negative ROA in 2020 and 2019 suggests that the company's net income was insufficient to cover the total value of its assets.

Overall, the improvement in the ROA in 2023 is a positive sign for Kirby Corp., indicating an enhanced efficiency in generating profits from its assets. However, the negative ROA figures in previous years highlight periods of financial challenges where the company struggled to generate sufficient returns relative to its asset base.