TRI Pointe Homes Inc (TPH)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 343,702 | 576,060 | 469,267 | 282,207 | 207,187 |
| Total assets | US$ in thousands | 4,914,590 | 4,719,940 | 4,336,220 | 4,021,980 | 3,858,690 |
| ROA | 6.99% | 12.20% | 10.82% | 7.02% | 5.37% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $343,702K ÷ $4,914,590K
= 6.99%
Tri Pointe Homes Inc.'s return on assets (ROA) has exhibited fluctuations over the past five years. The ROA was 6.99% at the end of 2023, which represents a decrease from the previous year's ROA of 12.20%. Comparing to 2021 (10.82%), the ROA further declined in 2023. However, the ROA for 2023 was higher than that of 2020 (7.02%) and 2019 (5.37%). This indicates that Tri Pointe Homes Inc. was able to generate a lower proportion of profit relative to its total assets in 2023 compared to 2022 and 2021, but the return was still better than two years prior. It suggests that the company may need to further assess its asset utilization efficiency to improve profitability in the future.
Peer comparison
Dec 31, 2023