Stepan Company (SCL)
Return on assets (ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 40,204 | 52,231 | 79,044 | 118,486 | 147,153 | 153,314 | 150,850 | 142,002 | 137,804 | 105,641 | 101,889 | 94,318 | 81,252 | 118,458 | 111,179 | 105,690 | 103,129 | 105,048 | 100,913 | 104,149 |
| Total assets | US$ in thousands | 2,363,350 | 2,333,530 | 2,430,820 | 2,445,940 | 2,433,170 | 2,336,770 | 2,288,800 | 2,272,600 | 2,065,610 | 1,955,940 | 1,887,300 | 1,827,940 | 1,752,340 | 1,617,650 | 1,543,410 | 1,506,300 | 1,579,370 | 1,518,370 | 1,528,970 | 1,526,000 |
| ROA | 1.70% | 2.24% | 3.25% | 4.84% | 6.05% | 6.56% | 6.59% | 6.25% | 6.67% | 5.40% | 5.40% | 5.16% | 4.64% | 7.32% | 7.20% | 7.02% | 6.53% | 6.92% | 6.60% | 6.82% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $40,204K ÷ $2,363,350K
= 1.70%
The return on assets (ROA) for Stepan Co. has shown a consistent downward trend over the past eight quarters, declining from 6.59% in Q2 2022 to 1.70% in Q4 2023. This indicates a decreasing effectiveness in generating profit relative to the company's total assets.
The downward trend in ROA suggests that Stepan Co. may be experiencing challenges in optimizing the utilization of its assets to generate profits efficiently. A declining ROA could also indicate potential inefficiencies in the company's operations or declining profitability relative to its asset base.
It is important for Stepan Co. to closely monitor its asset management strategies and seek ways to improve the efficiency of utilizing its assets to enhance profitability. Additionally, the company should assess the underlying factors contributing to the declining ROA and implement strategic measures to reverse this trend and improve overall financial performance.
Peer comparison
Dec 31, 2023