Enpro Industries (NPO)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 22,200 | 205,100 | 177,900 | 177,600 | 38,300 |
| Total assets | US$ in thousands | 2,499,500 | 2,647,800 | 2,974,600 | 2,083,600 | 2,035,100 |
| ROA | 0.89% | 7.75% | 5.98% | 8.52% | 1.88% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $22,200K ÷ $2,499,500K
= 0.89%
The return on assets (ROA) for Enpro Inc has fluctuated over the past five years. In 2023, the ROA decreased significantly to 0.89% from 7.75% in 2022. This abrupt decline suggests that Enpro Inc's ability to generate profits from its assets diminished considerably.
Comparing the ROA in 2023 to the earlier years, it is notably lower than the 5-year average ROA. This may indicate potential operational inefficiencies or asset underutilization within the company during the most recent year.
In 2023, with an ROA of 0.89%, Enpro Inc may be struggling to effectively manage its assets to generate profitability, which could be a cause for concern for stakeholders. Further investigation into the company's asset management strategies and financial performance is recommended to determine the root cause of the decline in ROA and to implement corrective actions, if necessary.