Leidos Holdings Inc (LDOS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 199,000 | 685,000 | 753,000 | 628,000 | 667,000 |
| Total assets | US$ in thousands | 12,695,000 | 13,071,000 | 13,261,000 | 12,511,000 | 9,367,000 |
| ROA | 1.57% | 5.24% | 5.68% | 5.02% | 7.12% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $199,000K ÷ $12,695,000K
= 1.57%
The return on assets (ROA) for Leidos Holdings Inc has fluctuated over the past five years. In 2023, the ROA decreased to 1.57% from 5.24% in 2022. This decline indicates a lower profitability generated from the company's assets in 2023 compared to the previous year. The ROA was also lower in 2023 compared to 2021 when it stood at 5.68%.
Looking further back, the ROA in 2020 was slightly lower at 5.02%, and in 2019, it was the highest at 7.12%. The downward trend in ROA from 2019 to 2023 suggests that Leidos Holdings Inc may be experiencing challenges in generating profits relative to its asset base.
It is important for stakeholders to monitor the company's ROA closely to assess its efficiency in utilizing assets to generate earnings. A decreasing trend in ROA may indicate potential issues with operational efficiency or profitability that warrant further investigation and strategic adjustments by the company.
Peer comparison
Dec 31, 2023