Portland General Electric Co (POR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 228,000 | 233,000 | 244,000 | 155,000 | 214,000 |
| Total assets | US$ in thousands | 11,208,000 | 10,459,000 | 9,494,000 | 9,069,000 | 8,394,000 |
| ROA | 2.03% | 2.23% | 2.57% | 1.71% | 2.55% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $228,000K ÷ $11,208,000K
= 2.03%
Portland General Electric Co's return on assets (ROA) has shown fluctuations over the five-year period from 2019 to 2023. In 2019, the ROA was at a relatively high level of 2.55%, indicating efficient utilization of assets to generate earnings. However, in 2020, there was a decrease in ROA to 1.71%, suggesting a decline in profitability relative to the level of assets employed.
The company's ROA rebounded in 2021 to 2.57%, surpassing the previous peak in 2019, which could indicate improved asset management and/or increased profitability. In 2022, the ROA decreased slightly to 2.23%, but remained relatively stable compared to the fluctuations seen in previous years.
By the end of 2023, Portland General Electric Co's ROA stood at 2.03%, showing a further decline from the previous year. This decrease may raise concerns about the company's ability to generate earnings from its assets efficiently, as a lower ROA indicates lower profitability relative to the size of the asset base.
Overall, while the company has demonstrated the ability to generate returns from its assets over the years, the fluctuations in the ROA highlight the importance of closely monitoring asset utilization and profitability to ensure sustainable financial performance.
Peer comparison
Dec 31, 2023