PPL Corporation (PPL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 740,000 | 756,000 | -1,480,000 | 1,469,000 | 1,746,000 |
| Total assets | US$ in thousands | 39,236,000 | 37,837,000 | 33,223,000 | 48,116,000 | 45,680,000 |
| ROA | 1.89% | 2.00% | -4.45% | 3.05% | 3.82% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $740,000K ÷ $39,236,000K
= 1.89%
PPL Corp's return on assets (ROA) has varied over the past five years, with a downward trend observed from 2019 to 2021, before a slight recovery in 2022 and a further decrease in 2023. In 2019, the ROA was relatively high at 3.82%, indicating that the company efficiently generated profits relative to its total assets. However, the ROA significantly declined to -4.45% in 2021, signaling that the company either experienced net losses or struggled to generate profits from its assets that year.
The improvement in ROA to 2.00% in 2022 suggests that the company managed to enhance its profitability relative to its assets. Nonetheless, the ROA decreased again to 1.88% in 2023, indicating a potential decrease in efficiency in generating profits from its assets. Overall, the fluctuations in PPL Corp's ROA over the years reflect changes in the company's ability to utilize its assets effectively to generate profits. Further analysis of the company's financial performance and asset management practices may be required to fully understand the factors influencing these trends.
Peer comparison
Dec 31, 2023