Sempra Energy (SRE)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,862,000 | 3,075,000 | 2,139,000 | 1,318,000 | 3,764,000 |
| Total assets | US$ in thousands | 96,155,000 | 87,181,000 | 78,574,000 | 72,045,000 | 66,623,000 |
| ROA | 2.98% | 3.53% | 2.72% | 1.83% | 5.65% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $2,862,000K ÷ $96,155,000K
= 2.98%
The return on assets (ROA) for Sempra Energy has shown some fluctuations over the period from December 31, 2020, to December 31, 2024.
- As of December 31, 2020, the ROA was at 5.65%, indicating that the company generated $0.0565 in net income for every dollar of assets it possessed.
- However, by December 31, 2021, the ROA had decreased to 1.83%, suggesting a decline in the company's efficiency in generating profit from its assets.
- By December 31, 2022, the ROA improved slightly to 2.72%, signaling a moderate recovery in the company's asset utilization and profitability.
- Subsequently, as of December 31, 2023, the ROA further increased to 3.53%, indicating a more efficient use of assets to generate income.
- Finally, by December 31, 2024, the ROA had decreased to 2.98%, which, although lower than the previous year, still demonstrates an acceptable level of profitability relative to the assets employed.
Overall, the fluctuation in ROA suggests varying levels of effectiveness in utilizing assets to generate earnings over the period under review. It is important for Sempra Energy to closely monitor and manage its asset utilization to maintain profitability and sustainable growth in the future.
Peer comparison
Dec 31, 2024