Stanley Black & Decker Inc (SWK)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 294,300 | -310,500 | 170,300 | 1,689,200 | 1,233,800 |
| Total assets | US$ in thousands | 21,848,900 | 23,663,800 | 24,963,300 | 28,197,600 | 23,566,300 |
| ROA | 1.35% | -1.31% | 0.68% | 5.99% | 5.24% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $294,300K ÷ $21,848,900K
= 1.35%
Stanley Black & Decker Inc's return on assets (ROA) has fluctuated over the past five years. In 2020, the ROA was 5.24%, which increased slightly to 5.99% in 2021. However, there was a significant decrease in ROA to 0.68% in 2022, followed by a further decline to -1.31% in 2023. This negative ROA indicates that the company's assets were not generating sufficient profits during that period.
Fortunately, there was a recovery in 2024, with the ROA improving to 1.35%. While the positive trend is a good sign, it is important for Stanley Black & Decker Inc to continue monitoring and improving its ROA to ensure efficient utilization of assets and sustainable profitability in the future. The company may need to focus on enhancing operational efficiency, managing costs, and driving revenue growth to boost its ROA over the long term.
Peer comparison
Dec 31, 2024