Enviri Corporation (NVRI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -86,121 | -180,069 | -3,249 | -26,341 | 503,919 |
| Total assets | US$ in thousands | 2,854,550 | 2,790,850 | 3,053,910 | 2,993,290 | 2,367,470 |
| ROA | -3.02% | -6.45% | -0.11% | -0.88% | 21.29% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-86,121K ÷ $2,854,550K
= -3.02%
Enviri Corp's return on assets (ROA) has fluctuated significantly over the past five years. In 2019, the company achieved a high ROA of 21.29%, indicating efficient utilization of its assets to generate profits. However, in subsequent years, the ROA deteriorated considerably.
By the end of 2020, the ROA decreased to -0.88%, signaling a decline in the company's ability to generate earnings relative to its assets. This negative trend persisted in 2021 with an ROA of -0.11%, implying ongoing challenges in asset productivity.
Further worsening was observed in 2022 and 2023, with ROA figures of -6.45% and -3.02% respectively. These negative ROA values suggest that Enviri Corp faced significant difficulties in effectively leveraging its assets to generate profitability during these periods.
Overall, Enviri Corp's downward trend in ROA over the past five years raises concerns about the company's operational efficiency and asset management practices. Addressing these challenges will be crucial for the company to improve its financial performance and increase returns for its shareholders.