MDU Resources Group Inc (MDU)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	414,707	367,489	378,131	390,205	335,453
Total assets	US$ in thousands	7,833,160	9,660,780	8,910,440	8,053,370	7,683,060
ROA		5.29%	3.80%	4.24%	4.85%	4.37%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $414,707K ÷ $7,833,160K
= 5.29%

MDU Resources Group Inc's return on assets (ROA) has shown a fluctuating trend over the past five years. The ROA increased from 4.37% in 2019 to 4.85% in 2020 before experiencing a slight dip to 4.24% in 2021. Subsequently, there was a further increase to 3.80% in 2022 and a notable rise to 5.29% in 2023.

The increase in ROA from 2022 to 2023 suggests an improvement in the company's ability to generate profits relative to its total assets. This indicates that the company has been more efficient in utilizing its assets to generate earnings, which is a positive sign for investors.

It is important to note that while ROA provides insights into the company's asset efficiency, it should be analyzed alongside other financial ratios and factors to gain a comprehensive understanding of the company's overall financial performance and sustainability.