Rollins Inc (ROL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 434,957 | 368,599 | 356,565 | 266,756 | 203,347 |
| Total assets | US$ in thousands | 2,595,460 | 2,122,030 | 2,021,540 | 1,845,900 | 1,744,380 |
| ROA | 16.76% | 17.37% | 17.64% | 14.45% | 11.66% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $434,957K ÷ $2,595,460K
= 16.76%
Rollins, Inc. has demonstrated a consistent trend of improving return on assets (ROA) over the past five years. The company's ROA has increased from 11.66% in 2019 to 16.76% in 2023, indicating that Rollins, Inc. is generating a higher level of profit relative to its total assets. This upward trend suggests that the company is becoming more efficient in utilizing its assets to generate profits.
The ROA of Rollins, Inc. peaked at 17.70% in 2021 before experiencing a slight decline to 16.76% in 2023. Despite this decline, the company continues to outperform its ROA from the previous years. A high ROA indicates that Rollins, Inc. is effectively managing its assets to generate earnings, which is a positive sign for investors and stakeholders.
Overall, Rollins, Inc. has shown a strong performance in terms of ROA, indicating that the company is adept at generating profit from its asset base. Maintaining or further improving this metric will be crucial for sustaining growth and profitability in the future.
Peer comparison
Dec 31, 2023