Masco Corporation (MAS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 908,000 | 844,000 | 410,000 | 1,224,000 | 935,000 |
| Total assets | US$ in thousands | 5,363,000 | 5,187,000 | 5,575,000 | 5,777,000 | 5,027,000 |
| ROA | 16.93% | 16.27% | 7.35% | 21.19% | 18.60% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $908,000K ÷ $5,363,000K
= 16.93%
Masco Corp.'s return on assets (ROA) has exhibited fluctuating trends over the past five years. In 2023, the ROA stood at 16.92%, representing an increase from the prior year's ROA of 16.23%. This indicates that for every dollar of assets, Masco generated a profit of 16.92 cents in 2023.
Comparing the recent ROA with historical data, Masco's performance in 2023 surpassed the ROA of 7.28% in 2021 but lagged behind the higher returns seen in 2020 (21.03%) and 2019 (18.48%). The significant increase in ROA in 2020 suggests that the company was more efficient in generating profits relative to its assets that year.
Overall, Masco Corp.'s ROA has shown variability, with performance peaking in 2020 and experiencing fluctuations in subsequent years. This indicates the company's ability to effectively manage its assets to generate profits has not been consistent. Further analysis of the company's asset utilization and profitability ratios may help identify the factors contributing to these fluctuations in ROA.
Peer comparison
Dec 31, 2023