Pilgrims Pride Corp (PPC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 321,574 | 745,930 | 31,000 | 94,757 | 455,924 |
| Total assets | US$ in thousands | 9,810,360 | 9,255,770 | 8,913,200 | 7,474,500 | 7,102,360 |
| ROA | 3.28% | 8.06% | 0.35% | 1.27% | 6.42% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $321,574K ÷ $9,810,360K
= 3.28%
Pilgrim`s Pride Corp.'s return on assets (ROA) has exhibited fluctuations over the past five years. In 2023, the ROA decreased significantly to 3.28% from 8.06% in 2022, indicating a decrease in the company's ability to generate profits from its assets. This decline may raise concerns about the company's efficiency in utilizing its assets to generate earnings.
Comparing the 2023 ROA to the years 2021, 2020, and 2019, it appears that Pilgrim`s Pride Corp.'s performance in 2023 was still better than in 2021 and 2020 when the ROA was 0.35% and 1.27%, respectively. However, it falls short of the 6.42% ROA achieved in 2019, indicating a decline in asset utilization efficiency over the years.
Overall, Pilgrim`s Pride Corp.'s ROA trend demonstrates some inconsistency and downward trajectory in recent years, suggesting potential challenges in effectively generating profits relative to its asset base. Further analysis and examination of the company's operational efficiency and asset management strategies may be warranted to address these fluctuations and improve ROA performance.
Peer comparison
Dec 31, 2023