Quanex Building Products (NX)
Return on assets (ROA)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 82,501 | 88,336 | 56,980 | 38,496 | -46,730 |
| Total assets | US$ in thousands | 831,143 | 724,617 | 717,323 | 691,585 | 645,110 |
| ROA | 9.93% | 12.19% | 7.94% | 5.57% | -7.24% |
October 31, 2023 calculation
ROA = Net income ÷ Total assets
= $82,501K ÷ $831,143K
= 9.93%
Quanex Building Products Corp's return on assets (ROA) measures the company's efficiency in generating profit from its assets.
In 2023, the ROA stands at 9.93%, showing a decrease from the previous year's figure of 12.19%. Despite the decline, the company's ability to generate earnings from its assets remains relatively strong.
Comparing the ROA to 2021, there was a notable improvement from 7.94% to 12.19%, suggesting the company became more efficient in utilizing its assets to generate earnings.
In 2020, Quanex Building Products Corp's ROA was 5.57%, representing a positive trend from the negative ROA of -7.24% in 2019. This improvement indicates that the company effectively increased its profitability relative to its total assets.
It is important to note that ROA can be influenced by various factors such as the company's asset base and its profitability. Therefore, Quanex Building Products Corp should continuously monitor and manage its asset utilization and profitability to sustain and enhance its ROA in the future.
Peer comparison
Oct 31, 2023