Stericycle Inc (SRCL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -21,400 | 56,000 | -27,800 | -57,300 | -346,800 |
| Total assets | US$ in thousands | 5,352,600 | 5,334,100 | 5,473,100 | 5,581,900 | 6,437,000 |
| ROA | -0.40% | 1.05% | -0.51% | -1.03% | -5.39% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-21,400K ÷ $5,352,600K
= -0.40%
The return on assets (ROA) of Stericycle Inc. has exhibited fluctuations over the past five years. In 2023, the ROA was -0.40%, a decrease from the previous year's value of 1.05%. This negative ROA indicates that the company generated a loss relative to its total assets for the year 2023.
Comparing to the ROA of 2021 and 2020, which were -0.51% and -1.03% respectively, the company's performance in 2023 was somewhat better. However, when considering the significant improvement seen in 2022 with a ROA of 1.05%, the recent decrease in 2023 raises concerns about the company's profitability.
The most concerning result was in 2019 when the ROA was -5.39%, reflecting a substantial negative return relative to the total assets. Since then, Stericycle Inc. has shown efforts to improve its asset utilization efficiency.
Overall, it is crucial for Stericycle Inc. to closely monitor its return on assets to ensure it effectively generates profits from its assets and improves its financial performance in the future.
Peer comparison
Dec 31, 2023