PPL Corporation (PPL)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 888,000 | 824,000 | 840,000 | 762,000 | 740,000 | 817,000 | 761,000 | 768,000 | 756,000 | 700,000 | 733,000 | 633,000 | -1,480,000 | -1,324,000 | -1,250,000 | -925,000 | 1,469,000 | 1,543,000 | 1,737,000 | 1,834,000 |
| Total assets | US$ in thousands | 41,069,000 | 40,472,000 | 39,839,000 | 39,631,000 | 39,236,000 | 38,629,000 | 38,296,000 | 38,302,000 | 37,837,000 | 37,378,000 | 37,062,000 | 34,107,000 | 33,223,000 | 34,171,000 | 36,759,000 | 47,781,000 | 48,116,000 | 47,924,000 | 46,520,000 | 46,328,000 |
| ROA | 2.16% | 2.04% | 2.11% | 1.92% | 1.89% | 2.11% | 1.99% | 2.01% | 2.00% | 1.87% | 1.98% | 1.86% | -4.45% | -3.87% | -3.40% | -1.94% | 3.05% | 3.22% | 3.73% | 3.96% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $888,000K ÷ $41,069,000K
= 2.16%
The return on assets (ROA) for PPL Corporation has fluctuated over the past few years. Starting from 3.96% in March 2020, the ROA gradually decreased to 1.94% by March 2021, indicating a decline in the company's efficiency in generating earnings from its assets during that period.
Subsequently, the ROA experienced significant negative values in the following quarters, reflecting a period of underperformance where the company was not effectively utilizing its assets to generate profits. The negative ROA figures up to December 2021 suggest potential financial challenges or inefficiencies within the company.
However, starting from March 2022, there was a turnaround as the ROA improved to 1.86% and continued to increase steadily over the next few quarters, reaching 2.16% by December 2024. This positive trend indicates that PPL Corporation has been able to enhance its asset efficiency and profitability, potentially through improved operational efficiency, cost management, or strategic investments.
Overall, the analysis highlights the importance of monitoring ROA as a key indicator of a company's ability to generate profits relative to its total assets, with PPL Corporation showing a mixed performance and an eventual improvement in asset utilization and profitability over the observed period.
Peer comparison
Dec 31, 2024