Stepan Company (SCL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 40,204 | 147,153 | 137,804 | 126,770 | 103,129 |
| Total assets | US$ in thousands | 2,363,350 | 2,433,170 | 2,065,610 | 1,752,340 | 1,579,370 |
| ROA | 1.70% | 6.05% | 6.67% | 7.23% | 6.53% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $40,204K ÷ $2,363,350K
= 1.70%
The Return on Assets (ROA) for Stepan Co. has been on a declining trend over the past five years, as indicated by the decreasing percentages from 6.53% in 2019 to 1.70% in 2023. A decreasing ROA could suggest that the company is becoming less efficient in generating profits from its assets. This trend may raise concerns about the company's ability to effectively utilize its assets to generate profits for its shareholders. Further analysis is warranted to understand the factors contributing to this decline in ROA and to determine the appropriate strategies for improving the company's profitability.
Peer comparison
Dec 31, 2023
Company name
Symbol
ROA
Stepan Company
SCL
1.70%
Church & Dwight Company Inc
CHD
8.82%
Ecolab Inc
ECL
6.28%
Procter & Gamble Company
PG
12.16%