Travel + Leisure Co (TNL)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 411,000 | 396,000 | 357,000 | 308,000 | -255,000 |
| Total assets | US$ in thousands | 6,735,000 | 6,738,000 | 6,757,000 | 6,588,000 | 7,613,000 |
| ROA | 6.10% | 5.88% | 5.28% | 4.68% | -3.35% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $411,000K ÷ $6,735,000K
= 6.10%
Travel + Leisure Co's return on assets (ROA) has shown a noticeable improvement over the years based on the provided data. The ROA was -3.35% as of December 31, 2020, indicating a negative return on assets. However, by December 31, 2021, the ROA had turned positive to 4.68%, reflecting a significant improvement in the company's ability to generate profit from its assets.
Furthermore, the ROA continued its upward trajectory, reaching 5.28% by December 31, 2022, and further improving to 5.88% by December 31, 2023. This consistent increase suggests that Travel + Leisure Co has been effectively utilizing its assets to generate profits, which is a positive sign for investors and stakeholders.
As of December 31, 2024, the ROA stood at 6.10%, indicating that the company's asset efficiency and profitability have continued to strengthen. Overall, the increasing trend in ROA reflects a positive performance for Travel + Leisure Co in terms of generating returns relative to its asset base over the years.
Peer comparison
Dec 31, 2024