PulteGroup Inc (PHM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,083,260 | 2,602,370 | 2,617,320 | 1,946,320 | 1,406,840 |
| Total assets | US$ in thousands | 17,363,800 | 16,087,000 | 14,796,500 | 13,352,600 | 12,205,500 |
| ROA | 17.76% | 16.18% | 17.69% | 14.58% | 11.53% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $3,083,260K ÷ $17,363,800K
= 17.76%
The Return on Assets (ROA) of PulteGroup Inc has shown a steady and positive trend over the years, starting at 11.53% as of December 31, 2020, and increasing consistently to 14.58% in 2021, 17.69% in 2022, 16.18% in 2023, and reaching 17.76% by December 31, 2024.
This improvement indicates that the company has been effectively utilizing its assets to generate profits. The ROA metric is crucial as it assesses the efficiency of the company in generating earnings from its total assets. PulteGroup Inc's increasing ROA demonstrates its ability to maximize returns relative to the resources it has at its disposal, suggesting effective asset management strategies and potential long-term profitability.
Peer comparison
Dec 31, 2024