Knowles Cor (KN)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 72,400 | -430,100 | 150,400 | 6,600 | 49,100 |
| Total assets | US$ in thousands | 1,462,800 | 1,183,900 | 1,731,600 | 1,654,900 | 1,654,600 |
| ROA | 4.95% | -36.33% | 8.69% | 0.40% | 2.97% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $72,400K ÷ $1,462,800K
= 4.95%
Knowles Corp's return on assets (ROA) has shown significant fluctuations over the past five years. In 2023, the company's ROA stood at 4.95%, indicating an improvement from the negative ROA of -36.33% in 2022. This positive change suggests that the company's profits generated from its assets increased in 2023.
The ROA of 4.95% in 2023 was also higher than the ROA figures in 2021 and 2019, which were 8.69% and 2.97% respectively. This indicates a favorable performance in utilizing its assets to generate earnings compared to the previous years.
However, the ROA in 2023 was lower than the ROA in 2020, which stood at 0.40%. This suggests that the company's asset efficiency in generating profits decreased from 2020 to 2023.
Overall, despite the fluctuations in ROA over the years, the positive ROA of 4.95% in 2023 indicates an improvement in the company's ability to generate profits relative to its assets compared to the previous year and demonstrates a relatively efficient use of assets for generating earnings.
Peer comparison
Dec 31, 2023