Mercer International Inc (MERC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -242,056 | 247,039 | 170,988 | -17,235 | -9,639 |
| Total assets | US$ in thousands | 2,662,580 | 2,725,040 | 2,351,230 | 2,129,130 | 2,065,720 |
| ROA | -9.09% | 9.07% | 7.27% | -0.81% | -0.47% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-242,056K ÷ $2,662,580K
= -9.09%
Mercer International Inc.'s Return on Assets (ROA) has displayed varying trends over the past five years. In 2023, the ROA deteriorated significantly to -9.09%, indicating a negative return on assets for that year. This sharp decline could signal potential operational inefficiencies or limitations in utilizing assets to generate profits.
Conversely, in 2022, the company achieved a strong ROA of 9.07%, reflecting an efficient use of assets to generate profits. This positive performance was maintained from 2021 when the ROA stood at 7.27%, suggesting sustained asset productivity over these two years.
However, prior to 2021, the company faced challenges as seen in its negative ROA of -0.81% in 2020 and -0.47% in 2019. These negative returns indicate that the company may have struggled to generate profits relative to the size of its asset base during those years.
In conclusion, the fluctuating ROA of Mercer International Inc. over the past five years highlights the importance of closely monitoring the company's asset management efficiency and profitability generation capabilities. Further analysis and investigation would be necessary to understand the underlying factors driving these performance fluctuations.