Waters Corporation (WAT)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	642,234	707,755	692,843	521,571	592,198
Total assets	US$ in thousands	4,626,850	3,281,450	3,094,930	2,839,920	2,557,060
ROA		13.88%	21.57%	22.39%	18.37%	23.16%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $642,234K ÷ $4,626,850K
= 13.88%

Return on assets (ROA) is a key profitability ratio that indicates how effectively a company is able to generate profits from its assets. The ROA for Waters Corp. has exhibited fluctuations over the past five years as shown in the provided data.

In 2023, Waters Corp.'s ROA stood at 13.88%, reflecting a decrease from the previous year's ROA of 21.57%. This decline may suggest that the company's profitability relative to its assets decreased in 2023. However, it is important to note that ROA alone does not provide a full picture of company performance and should be considered alongside other financial metrics.

Comparing the ROA figures over the five-year period, we observe that Waters Corp. had a peak ROA of 23.16% in 2019, followed by fluctuations in subsequent years. While the company was able to generate high returns on its assets in certain years, there were also periods of lower ROA, such as in 2023.

Overall, the downward trend in ROA from 2019 to 2023 may raise questions about the company's asset utilization and efficiency in generating profits. Further analysis of the company's financial statements and performance indicators would be necessary to fully assess the factors contributing to the changes in ROA over time.