Waters Corporation (WAT)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	637,834	642,234	707,755	692,843	521,571
Total assets	US$ in thousands	4,553,800	4,626,850	3,281,450	3,094,930	2,839,920
ROA		14.01%	13.88%	21.57%	22.39%	18.37%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $637,834K ÷ $4,553,800K
= 14.01%

To analyze Waters Corporation's return on assets (ROA) over the past five years, we can see that the company's ROA has varied.

- In December 2020, the ROA was 18.37%, indicating that the company generated a return of 18.37 cents for every dollar of assets it owned.
- By December 2021, the ROA improved to 22.39%, demonstrating increased efficiency in utilizing its assets to generate profits.
- In December 2022, the ROA slightly decreased to 21.57%, although it remained relatively high compared to the previous year.
- However, by December 2023, the ROA significantly dropped to 13.88%, indicating a decrease in profitability relative to its asset base.
- In December 2024, there was a slight increase in ROA to 14.01%, but the return was still lower than the levels observed in 2021 and 2022.

Overall, the trend in Waters Corporation's ROA shows fluctuations with some years experiencing higher return efficiency than others. It is important for the company to closely monitor and manage its asset utilization in order to maintain consistent and optimal returns for its shareholders.