Materion Corporation (MTRN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,888 | 95,702 | 85,990 | 72,474 | 15,462 |
| Total assets | US$ in thousands | 1,697,630 | 1,762,730 | 1,691,980 | 1,607,480 | 1,057,860 |
| ROA | 0.35% | 5.43% | 5.08% | 4.51% | 1.46% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $5,888K ÷ $1,697,630K
= 0.35%
Materion Corporation's Return on Assets (ROA) has displayed fluctuations over the years based on the provided data. In December 31, 2020, the ROA stood at 1.46%, indicating that the company generated $0.0146 in net income for every dollar of assets held. Subsequently, there was a notable improvement by December 31, 2021, with the ROA surging to 4.51%, signifying enhanced efficiency in asset utilization and a positive growth trajectory.
By the end of December 31, 2022, Materion Corporation's ROA further increased to 5.08%, suggesting continued effectiveness in converting assets into profits. The trend persisted into December 31, 2023, as the ROA rose to 5.43%, reflecting the company's ability to generate greater returns relative to its asset base.
However, in December 31, 2024, there was a significant decline in Materion Corporation's ROA to 0.35%, indicating a sharp decrease in the efficiency of utilizing assets to generate profits. This downturn may warrant further investigation into the company's operational performance and asset management strategies to address the decrease and maintain sustainable profitability in the future.