nVent Electric PLC (NVT)
Return on assets (ROA)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 222,700 |
| Total assets | US$ in thousands | 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 | 4,640,300 |
| ROA | 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% | 4.80% |
September 30, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $576,000K ÷ $6,918,000K
= 8.33%
nVent Electric PLC's Return on Assets (ROA) has shown fluctuations over the past few years. The ROA ranged from a negative figure in the previous years (2019 and 2020) to positive percentages in recent quarters. Specifically, the ROA showed an improving trend from 2021 to 2024, indicating the company's ability to generate profits relative to its total assets has been increasing.
The ROA increased steadily from 5.41% in December 2021 to 9.37% in March 2024, reaching its peak during this period. This indicates that nVent Electric PLC has been more efficient in generating profits from its assets over time. Overall, the positive trend in ROA suggests that the company's management is effectively utilizing its assets to generate earnings.
However, it is noteworthy that the ROA experienced some fluctuations, such as a decline from 9.37% in March 2024 to 8.33% in September 2024. These fluctuations could be due to various factors, including changes in the company's asset base, profitability, or overall economic conditions.
In conclusion, nVent Electric PLC's improving ROA over the past quarters reflects positively on the company's operational efficiency and profitability. It indicates that the company is effectively using its assets to generate profits and create value for its shareholders.
Peer comparison
Sep 30, 2024