Resideo Technologies Inc (REZI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 116,000 | 210,000 | 283,000 | 242,000 | 37,000 |
| Total assets | US$ in thousands | 8,199,000 | 6,645,000 | 6,387,000 | 5,853,000 | 5,610,000 |
| ROA | 1.41% | 3.16% | 4.43% | 4.13% | 0.66% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $116,000K ÷ $8,199,000K
= 1.41%
The Return on Assets (ROA) for Resideo Technologies Inc has shown a fluctuating trend over the past five years. Starting at 0.66% on December 31, 2020, the ROA increased significantly to 4.13% by December 31, 2021, indicating improved efficiency in generating profits from its assets. This positive momentum continued into 2022, with the ROA further rising to 4.43%. However, there was a slight dip in the ROA to 3.16% by December 31, 2023, suggesting a potential slowdown in asset utilization.
The most recent ROA figure as of December 31, 2024, stands at 1.41%, indicating a notable decline in profitability relative to the previous year. This decrease may raise concerns about the company's ability to generate earnings from its assets effectively. Overall, the varying ROA trend observed over the years highlights the importance of closely monitoring the company's asset management strategies to ensure sustainable profitability and value creation for its stakeholders.