Upbound Group Inc. (UPBD)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -5,179 | 12,357 | 134,940 | 208,115 | 173,546 |
| Total assets | US$ in thousands | 2,721,430 | 2,763,620 | 2,993,330 | 1,750,980 | 1,582,800 |
| ROA | -0.19% | 0.45% | 4.51% | 11.89% | 10.96% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-5,179K ÷ $2,721,430K
= -0.19%
ROA measures how efficiently a company generates profits from its assets. In the case of Upbound Group Inc., its ROA has been fluctuating over the past five years. The trend indicates a decline from 10.96% in 2019 to -0.19% in 2023, with a significant drop in profitability.
The negative ROA in 2023 suggests that the company is not effectively utilizing its assets to generate profit, which could be a red flag for investors and creditors. The decline in ROA may indicate issues such as decreased profitability, inefficient asset management, or excessive use of debt.
It is essential for Upbound Group Inc. to analyze the reasons behind the decreasing ROA trend and take necessary actions to improve asset efficiency and profitability. Further investigation into the company's operations, financial structure, and strategic decisions is recommended to address the declining ROA and enhance overall financial performance.
Peer comparison
Dec 31, 2023