Tempur Sealy International Inc (TPX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 368,100 | 455,700 | 624,500 | 348,800 | 189,500 |
| Total assets | US$ in thousands | 4,553,900 | 4,359,800 | 4,323,400 | 3,308,600 | 3,061,800 |
| ROA | 8.08% | 10.45% | 14.44% | 10.54% | 6.19% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $368,100K ÷ $4,553,900K
= 8.08%
Tempur Sealy International Inc's Return on Assets (ROA) has shown fluctuating performance over the past five years. In 2023, the ROA decreased to 8.08% from 10.45% in 2022. This decline may indicate a decrease in the company's ability to generate profit with its assets during the year. However, it is noteworthy that the ROA in 2023 is still higher than the values reported in 2020 and 2019.
Comparing the latest ROA to the peak performance in 2021, where it reached 14.44%, there has been a significant decrease in the company's ability to efficiently utilize its assets to generate returns. It is essential for investors and stakeholders to further analyze the reasons behind this decline in ROA and assess the company's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2023