PPG Industries Inc (PPG)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,270,000 | 1,026,000 | 1,439,000 | 1,059,000 | 1,243,000 |
| Total assets | US$ in thousands | 21,647,000 | 20,744,000 | 21,351,000 | 19,556,000 | 17,708,000 |
| ROA | 5.87% | 4.95% | 6.74% | 5.42% | 7.02% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,270,000K ÷ $21,647,000K
= 5.87%
The return on assets (ROA) for PPG Industries, Inc. has fluctuated over the past five years. In 2023, the company achieved an ROA of 5.87%, showing an improvement compared to 2022 when it was 4.95%. This indicates that PPG Industries was more effective in generating profits from its assets in 2023.
However, when comparing 2023 to the ROA levels in 2021 and 2019, there were declines in performance. In 2021, the ROA was 6.74%, which was higher than in 2023, and in 2019, the ROA was at its peak with 7.02%. This suggests that the company was more efficient in utilizing its assets to generate earnings during those years.
Overall, while the 2023 ROA figure represents an improvement from the previous year, it falls short of the levels seen in 2021 and 2019, indicating that PPG Industries may need to focus on optimizing asset utilization to enhance profitability in the future.
Peer comparison
Dec 31, 2023