Upbound Group Inc. (UPBD)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 123,478 | -5,179 | 12,357 | 134,940 | 208,115 |
| Total assets | US$ in thousands | 2,649,660 | 2,721,430 | 2,763,620 | 2,993,330 | 1,750,980 |
| ROA | 4.66% | -0.19% | 0.45% | 4.51% | 11.89% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $123,478K ÷ $2,649,660K
= 4.66%
The return on assets (ROA) of Upbound Group Inc. has fluctuated over the past five years. In December 31, 2020, the ROA was 11.89%, indicating that the company generated a profit of 11.89% for every dollar of assets it holds. The following year, by December 31, 2021, the ROA decreased to 4.51%, reflecting a decline in the company's efficiency in generating earnings from its assets.
By December 31, 2022, the ROA further declined to a significantly lower 0.45%, suggesting a decrease in profitability relative to its asset base. In the subsequent year, the trend worsened as the ROA turned negative, reaching -0.19% by December 31, 2023. This indicates that the company might be experiencing challenges in generating profits from its assets, potentially signaling inefficiencies or financial difficulties.
However, there was a positive turnaround by December 31, 2024, with the ROA increasing to 4.66%. This improvement could be a result of strategic decisions or operational changes that enhanced the company's profitability relative to its asset utilization.
Overall, the fluctuating ROA figures suggest that Upbound Group Inc. has experienced volatility in its ability to generate returns from its asset base over the years, highlighting the importance of closely monitoring and managing asset efficiency to drive sustainable profitability.
Peer comparison
Dec 31, 2024