nVent Electric PLC (NVT)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 567,100 | 399,800 | 272,900 | -47,200 | 222,700 |
| Total assets | US$ in thousands | 6,161,700 | 4,902,200 | 4,674,200 | 4,366,100 | 4,640,300 |
| ROA | 9.20% | 8.16% | 5.84% | -1.08% | 4.80% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $567,100K ÷ $6,161,700K
= 9.20%
Based on the provided data, nVent Electric plc's return on assets (ROA) has shown a positive trend over the past five years. In 2023, the ROA stood at 9.20%, which is an increase from 8.16% in 2022 and 5.84% in 2021. This improvement indicates that the company is becoming more efficient in generating profits relative to its assets.
It is noteworthy that in 2020, nVent Electric plc experienced a negative ROA of -1.08%, which suggests that the company's assets were not effectively utilized to generate profits during that year. However, the company managed to recover from this setback and improve its ROA significantly in the following years.
Overall, the positive trend in nVent Electric plc's ROA indicates that the company has been able to effectively manage its assets to generate income and create value for its shareholders. This improvement may be attributed to better operational efficiency, asset utilization, and profitability, which are positive signals for the company's financial performance.
Peer comparison
Dec 31, 2023