Owens Corning Inc (OC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,196,000 | 1,241,000 | 995,000 | -383,000 | 405,000 |
| Total assets | US$ in thousands | 11,237,000 | 10,752,000 | 10,015,000 | 9,481,000 | 10,006,000 |
| ROA | 10.64% | 11.54% | 9.94% | -4.04% | 4.05% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,196,000K ÷ $11,237,000K
= 10.64%
Owens Corning's return on assets (ROA) has varied over the past five years, ranging from a negative 4.04% in 2020 to a high of 11.54% in 2022. The ROA for 2023 stands at 10.64%, demonstrating a slightly lower return compared to the previous year.
The positive ROA figures in recent years indicate the company's ability to generate profitability from its assets. However, the fluctuating ROA trend suggests some level of inconsistency in efficiency and performance in utilizing its assets to generate earnings.
Investors and stakeholders may view the downward trend from 2022 to 2023 with caution, as it could signal challenges in maintaining or improving profitability levels relative to the assets employed. Further analysis of the company's operational efficiency and asset management practices may be warranted to understand the factors influencing these fluctuations in ROA.