Stanley Black & Decker Inc (SWK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -310,500 | 1,062,500 | 1,689,200 | 1,233,800 | 955,800 |
| Total assets | US$ in thousands | 23,663,800 | 24,963,300 | 28,180,000 | 23,566,300 | 20,596,600 |
| ROA | -1.31% | 4.26% | 5.99% | 5.24% | 4.64% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-310,500K ÷ $23,663,800K
= -1.31%
Stanley Black & Decker Inc's return on assets (ROA) has been fluctuating over the past five years. In 2023, the ROA decreased significantly to -1.31%, indicating that the company's profitability in generating earnings from its assets was negative. This could be a cause for concern as it suggests inefficiency in asset utilization.
In the previous two years, 2022 and 2021, the ROA was relatively higher at 4.26% and 5.99% respectively, showing an improvement in the company's ability to generate profits from its assets. However, compared to the ROAs in 2020 and 2019, which were 5.24% and 4.64% respectively, the ROA has slightly declined.
Overall, the fluctuating trend in Stanley Black & Decker Inc's ROA indicates that the company's profitability relative to its assets has been somewhat inconsistent in recent years. Further analysis may be required to understand the factors influencing these fluctuations and to assess the company's overall financial performance.
Peer comparison
Dec 31, 2023