Callaway Golf Company (MODG)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,447,700 | 95,000 | 157,900 | 322,000 | -126,900 |
| Total assets | US$ in thousands | 7,636,100 | 9,120,600 | 8,590,400 | 7,747,800 | 1,980,600 |
| ROA | -18.96% | 1.04% | 1.84% | 4.16% | -6.41% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-1,447,700K ÷ $7,636,100K
= -18.96%
The return on assets (ROA) for Callaway Golf Company has shown fluctuations over the last five years. As of December 31, 2020, the ROA was negative at -6.41%, indicating that the company's net income was insufficient to cover its total assets.
By December 31, 2021, the ROA had improved significantly to 4.16%, signaling a more efficient utilization of assets to generate profit. The following year, as of December 31, 2022, the ROA slightly declined to 1.84%, suggesting a relatively lower profitability compared to the previous year.
In December 31, 2023, the ROA further decreased to 1.04%, indicating a potential decrease in the company's ability to generate earnings relative to its asset base. However, by the end of December 31, 2024, the ROA sharply declined to -18.96%, signifying a substantial drop in profitability and efficiency in utilizing assets.
Overall, the performance of Callaway Golf Company in terms of ROA has been mixed, with periods of improvement and decline. It is important for the company to closely monitor and manage its assets efficiently to enhance profitability and ensure sustainable growth in the future.
Peer comparison
Dec 31, 2024