Owens Corning Inc (OC)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 647,000 | 1,196,000 | 1,241,000 | 995,000 | -383,000 |
| Total assets | US$ in thousands | 14,075,000 | 11,237,000 | 10,752,000 | 10,015,000 | 9,481,000 |
| ROA | 4.60% | 10.64% | 11.54% | 9.94% | -4.04% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $647,000K ÷ $14,075,000K
= 4.60%
Owens Corning Inc's Return on Assets (ROA) is a key financial metric used to evaluate the company's efficiency in generating profit from its assets. ROA reflects the company's ability to utilize its assets to generate earnings.
Based on the provided data, Owens Corning Inc's ROA has shown fluctuating trends over the years. As of December 31, 2020, the ROA was -4.04%, indicating a negative return on assets. This could suggest that the company was not effectively utilizing its assets to generate profits.
However, there was a significant improvement in the ROA in the following years. By December 31, 2021, the ROA had surged to 9.94%, showcasing a notable turnaround in the company's asset efficiency. The positive increase in ROA continued to December 31, 2022, reaching 11.54%, indicating a further improvement in generating returns from its assets.
Subsequently, by December 31, 2023, the ROA was recorded at 10.64%, reflecting a slightly lower but still strong performance in asset utilization. However, there was a decline in the ROA by December 31, 2024, where it dropped to 4.60%.
Overall, Owens Corning Inc's ROA has demonstrated a mix of positive and negative performance over the years, with notable improvements in asset efficiency in some periods. It is essential for the company to continue monitoring and optimizing its asset utilization to sustain profitability and shareholder value.