Newmont Goldcorp Corp (NEM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -2,494,000 | -429,000 | 1,166,000 | 2,829,000 | 2,805,000 |
| Total assets | US$ in thousands | 55,506,000 | 38,482,000 | 40,564,000 | 41,369,000 | 39,974,000 |
| ROA | -4.49% | -1.11% | 2.87% | 6.84% | 7.02% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-2,494,000K ÷ $55,506,000K
= -4.49%
The return on assets (ROA) for Newmont Corp has experienced a downward trend over the past five years. In 2019 and 2020, the ROA was relatively high at 7.02% and 6.84% respectively, indicating that the company was generating a significant return on its assets during those years. However, the ROA declined to 2.87% in 2021 and further dropped to -1.11% in 2022, reflecting a diminishing ability to generate profits from its assets.
Notably, the ROA decreased significantly to -4.49% in 2023, suggesting that Newmont Corp faced challenges in efficiently utilizing its assets to generate returns for its shareholders. The negative ROA indicates that the company's assets may not have been effectively utilized to generate profits or that there were significant losses incurred during the period.
Overall, the declining trend in Newmont Corp's ROA raises concerns about the company's efficiency in managing its assets to generate profits and underscores the importance of closely monitoring its asset utilization and profitability in future periods.