Tempur Sealy International Inc (TPX)
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 | 368,100 | 392,700 | 412,100 | 410,300 | 455,700 | 529,800 | 574,500 | 624,700 | 624,500 | 593,400 | 537,400 | 419,600 | 348,800 | 250,300 | 202,200 | 220,800 | 189,500 | 155,600 | 124,600 | 105,800 |
| Total assets | US$ in thousands | 4,553,900 | 4,546,100 | 4,570,800 | 4,537,100 | 4,359,800 | 4,351,700 | 4,404,400 | 4,321,900 | 4,323,400 | 4,467,300 | 3,277,600 | 3,542,100 | 3,308,600 | 3,455,400 | 3,201,900 | 3,306,200 | 3,061,800 | 3,103,100 | 3,046,700 | 2,965,700 |
| ROA | 8.08% | 8.64% | 9.02% | 9.04% | 10.45% | 12.17% | 13.04% | 14.45% | 14.44% | 13.28% | 16.40% | 11.85% | 10.54% | 7.24% | 6.32% | 6.68% | 6.19% | 5.01% | 4.09% | 3.57% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $368,100K ÷ $4,553,900K
= 8.08%
Tempur Sealy International Inc's return on assets (ROA) has shown a declining trend over the past eight quarters, starting at 14.45% in Q1 2022 and decreasing to 8.08% in Q4 2023. This indicates that the company's ability to generate profits from its assets has weakened over time. The downward trend in ROA may be a concern for investors as it suggests decreasing efficiency in asset utilization or declining profitability relative to its asset base. Further analysis is warranted to identify the underlying factors contributing to this trend and to determine strategies for improving ROA going forward.
Peer comparison
Dec 31, 2023
Company name
Symbol
ROA
Tempur Sealy International Inc
TPX
8.08%
La-Z-Boy Incorporated
LZB
6.41%
Leggett & Platt Incorporated
LEG
-2.95%