Travel + Leisure Co (TNL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 396,000 | 357,000 | 308,000 | -255,000 | 507,000 |
| Total assets | US$ in thousands | 6,738,000 | 6,757,000 | 6,588,000 | 7,613,000 | 7,453,000 |
| ROA | 5.88% | 5.28% | 4.68% | -3.35% | 6.80% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $396,000K ÷ $6,738,000K
= 5.88%
Travel+Leisure Co's return on assets (ROA) has shown varying trends over the past five years. In 2023, the company's ROA improved to 5.88% from 5.28% in 2022, indicating that the company generated more income relative to its total assets. This suggests that the management was effective in utilizing the company's assets to generate profit.
The ROA further increased from 4.68% in 2021, showing a positive trajectory in asset utilization efficiency. However, back in 2020, the company experienced a negative ROA of -3.35%, which may indicate operational challenges or inefficient asset utilization leading to a loss.
Looking back at 2019, Travel+Leisure Co had an ROA of 6.80%, reflecting a strong performance in that year and efficient use of assets to generate profits. Overall, the recent improvement in ROA demonstrates potential operational effectiveness and profitability for the company in recent years.
Peer comparison
Dec 31, 2023