TRI Pointe Homes Inc (TPH)

Return on assets (ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	343,702	413,841	487,665	563,324	576,060	520,527	504,457	485,943	469,267	436,941	382,467	321,126	282,207	285,086	269,265	238,999	207,187	188,576	189,684	227,102
Total assets	US$ in thousands	4,914,590	4,870,230	4,780,560	4,739,240	4,719,940	4,526,040	4,414,660	4,314,070	4,336,220	4,233,680	4,160,160	4,092,950	4,021,980	3,957,560	3,977,900	4,293,050	3,858,690	3,941,470	3,877,550	3,855,900
ROA		6.99%	8.50%	10.20%	11.89%	12.20%	11.50%	11.43%	11.26%	10.82%	10.32%	9.19%	7.85%	7.02%	7.20%	6.77%	5.57%	5.37%	4.78%	4.89%	5.89%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $343,702K ÷ $4,914,590K
= 6.99%

Tri Pointe Homes Inc. has shown a declining trend in its return on assets (ROA) over the past eight quarters. The ROA decreased from 12.20% in Q4 2022 to 6.99% in Q4 2023. This decrease suggests that the company's efficiency in generating profit from its assets has weakened. However, it is important to note that even though the ROA has been decreasing, it still remains positive, indicating that Tri Pointe Homes Inc. is generating profit from its assets. Further analysis is necessary to understand the reasons behind this declining trend and to assess the company's overall financial performance and efficiency in utilizing its assets.