nVent Electric PLC (NVT)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 331,800 | 576,000 | 576,500 | 578,400 | 567,100 | 470,900 | 458,800 | 425,800 | 399,800 | 308,100 | 289,000 | 275,300 | 272,900 | 253,000 | 40,000 | -400 | -47,200 | -48,800 | 149,800 | 184,900 |
| Total assets | US$ in thousands | 6,734,900 | 6,918,000 | 6,188,100 | 6,169,700 | 6,161,700 | 5,925,700 | 5,922,100 | 4,916,400 | 4,902,200 | 4,875,900 | 4,765,600 | 4,703,600 | 4,674,200 | 4,678,900 | 4,709,800 | 4,398,000 | 4,366,100 | 4,410,600 | 4,712,400 | 4,730,200 |
| ROA | 4.93% | 8.33% | 9.32% | 9.37% | 9.20% | 7.95% | 7.75% | 8.66% | 8.16% | 6.32% | 6.06% | 5.85% | 5.84% | 5.41% | 0.85% | -0.01% | -1.08% | -1.11% | 3.18% | 3.91% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $331,800K ÷ $6,734,900K
= 4.93%
nVent Electric PLC's Return on Assets (ROA) shows the ability of the company to generate profits from its assets. Looking at the trend over the past years, the ROA has fluctuated significantly.
The ROA was at a relatively healthy level of around 3-4% from March 2020 to June 2021. However, it turned negative in the following quarters, indicating that the company was not efficiently utilizing its assets to generate income during that period.
From September 2021 onwards, there was a positive turnaround in the ROA, with a significant improvement reaching above 5% and climbing steadily. This improvement suggests that nVent Electric PLC became more efficient in generating profits from its assets.
The highest ROA was recorded in December 2023 at 9.20%, indicating a strong performance in asset utilization. However, there was a slight dip in the ROA in the following quarters, dropping to around 8%.
Overall, nVent Electric PLC has shown a mixed performance in terms of ROA, with periods of both high and low returns. It is essential for the company to continue monitoring and improving its asset efficiency to ensure sustainable profitability.
Peer comparison
Dec 31, 2024