Resideo Technologies Inc (REZI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 210,000 | 283,000 | 242,000 | 37,000 | 36,000 |
| Total assets | US$ in thousands | 6,645,000 | 6,387,000 | 5,853,000 | 5,610,000 | 5,128,000 |
| ROA | 3.16% | 4.43% | 4.13% | 0.66% | 0.70% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $210,000K ÷ $6,645,000K
= 3.16%
The Return on Assets (ROA) for Resideo Technologies Inc has fluctuated over the past five years. In 2023, the ROA decreased to 3.16%, down from 4.43% in 2022, and 4.13% in 2021. This decrease could indicate a decline in the company's ability to generate profits relative to its total assets during the year.
Compared to 2020 and 2019, where the ROA was 0.66% and 0.70% respectively, the company has shown significant improvement in utilizing its assets to generate returns. This improvement suggests an enhanced efficiency in asset management and profitability over the last three years.
Overall, while the ROA has seen fluctuations in recent years, it is essential for Resideo Technologies Inc to continue monitoring and improving its asset utilization to sustain or enhance its profitability in the future.