Enpro Industries (NPO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 72,900 | 22,200 | 3,900 | 177,900 | -23,300 |
| Total assets | US$ in thousands | 2,491,500 | 2,499,500 | 2,647,800 | 2,968,700 | 2,083,600 |
| ROA | 2.93% | 0.89% | 0.15% | 5.99% | -1.12% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $72,900K ÷ $2,491,500K
= 2.93%
Based on the provided data, Enpro Industries' return on assets (ROA) has shown fluctuations over the past five years. In December 31, 2020, the ROA was at a negative 1.12%, indicating that the company's assets were not generating a positive return. However, there was a significant improvement in December 31, 2021, with the ROA increasing to 5.99%, reflecting a more efficient utilization of assets to generate profit.
Subsequently, in December 31, 2022, the ROA decreased to a low 0.15%, suggesting a potential decrease in profitability relative to the assets employed. However, there was a slight improvement in December 31, 2023, with the ROA rising to 0.89%. This indicates that the company may have enhanced its asset management efficiency, although the return is still relatively modest.
In the most recent year, December 31, 2024, the ROA further improved to 2.93%, showing a more favorable performance in generating profit from its assets compared to the previous years. Overall, the trend in Enpro Industries' ROA indicates fluctuations in asset utilization and profitability over the years, with significant improvements in some periods but also periods of lower efficiency.