Southwest Gas Holdings Inc (SWX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 198,815 | 150,889 | -1,622,480 | 200,779 | 232,324 |
| Total assets | US$ in thousands | 12,023,800 | 11,869,900 | 13,196,600 | 12,765,300 | 8,735,850 |
| ROA | 1.65% | 1.27% | -12.29% | 1.57% | 2.66% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $198,815K ÷ $12,023,800K
= 1.65%
Based on the data provided, Southwest Gas Holdings Inc's return on assets (ROA) has fluctuated over the years. In December 31, 2020, the ROA stood at 2.66%, indicating that the company generated $2.66 in profit for every $100 of assets. The ROA decreased to 1.57% by December 31, 2021, suggesting a less efficient utilization of assets to generate profits.
A significant decline was observed by December 31, 2022, with ROA dropping to -12.29%. This negative ROA indicates that the company incurred losses relative to its assets during that period, signaling potential financial challenges or inefficiencies.
However, there was a slight improvement in the company's performance by December 31, 2023, as the ROA rose to 1.27%. This indicates a better utilization of assets to generate profits compared to the previous year. By December 31, 2024, the ROA further increased to 1.65%, reflecting continued improvement in asset efficiency.
Overall, Southwest Gas Holdings Inc's ROA has shown variability over the years, with periods of both positive and negative returns. It would be essential for stakeholders to closely monitor the company's asset management strategies and financial performance to ensure sustained profitability and efficiency in the future.
Peer comparison
Dec 31, 2024