Somnigroup International Inc. (SGI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 368,100 | 455,700 | 624,500 | 348,800 | 189,500 |
| Total assets | US$ in thousands | 4,553,900 | 4,359,800 | 4,323,400 | 3,308,600 | 3,061,800 |
| ROA | 8.08% | 10.45% | 14.44% | 10.54% | 6.19% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $368,100K ÷ $4,553,900K
= 8.08%
Somnigroup International Inc.'s return on assets (ROA) has shown a positive trend over the past five years. Starting at 6.19% on December 31, 2019, the ROA increased to 10.54% by December 31, 2020, indicating an improvement in the company's ability to generate profit from its assets. This upward trajectory continued as the ROA further jumped to 14.44% by December 31, 2021, reflecting a significant efficiency in asset utilization.
However, there was a slight dip in the ROA to 10.45% by December 31, 2022, which might suggest a temporary decrease in profitability relative to the size of the company's asset base. Subsequently, by December 31, 2023, the ROA decreased further to 8.08%, indicating a continued decline in the company's ability to generate earnings from its assets compared to the previous year.
Overall, while Somnigroup International Inc. has shown a mixed performance in terms of ROA over the analyzed period, the company needs to focus on maintaining or improving its profitability relative to its asset base to ensure sustainable growth and efficiency in the coming years.
Peer comparison
Dec 31, 2023