Westinghouse Air Brake Technologies Corp (WAB)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,056,000 | 815,000 | 633,000 | 558,000 | 414,000 |
| Total assets | US$ in thousands | 18,702,000 | 18,988,000 | 18,516,000 | 18,454,000 | 18,454,000 |
| ROA | 5.65% | 4.29% | 3.42% | 3.02% | 2.24% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,056,000K ÷ $18,702,000K
= 5.65%
Westinghouse Air Brake Technologies Corp has shown a consistent improvement in its return on assets (ROA) over the past five years. The ROA has increased from 2.24% as of December 31, 2020, to 5.65% as of December 31, 2024. This signifies that for every dollar of assets the company has, it generated a higher level of net income in 2024 compared to previous years.
The upward trend in ROA indicates that the company has been effectively utilizing its assets to generate profits. This could be attributed to better asset management, efficient operations, increased sales, or cost control measures. A rising ROA is generally a positive indicator of operational efficiency and profitability, signaling potential improvements in the company's overall financial performance.
Overall, the progressive increase in Westinghouse Air Brake Technologies Corp's ROA reflects a positive trend in its ability to generate earnings from its assets, which is essential for sustainable growth and value creation for its shareholders.
Peer comparison
Dec 31, 2024