Waters Corporation (WAT)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 637,834 | 622,641 | 595,690 | 603,507 | 642,234 | 653,091 | 674,537 | 688,847 | 707,755 | 696,932 | 702,119 | 704,547 | 692,843 | 694,915 | 660,499 | 616,136 | 521,571 | 503,929 | 515,293 | 536,774 |
| Total assets | US$ in thousands | 4,553,800 | 4,511,620 | 4,449,050 | 4,508,960 | 4,626,850 | 4,497,180 | 4,548,200 | 3,306,820 | 3,281,450 | 3,070,050 | 3,040,570 | 3,041,270 | 3,094,930 | 3,115,920 | 3,103,650 | 3,211,560 | 2,839,920 | 2,679,290 | 2,648,300 | 2,666,520 |
| ROA | 14.01% | 13.80% | 13.39% | 13.38% | 13.88% | 14.52% | 14.83% | 20.83% | 21.57% | 22.70% | 23.09% | 23.17% | 22.39% | 22.30% | 21.28% | 19.18% | 18.37% | 18.81% | 19.46% | 20.13% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $637,834K ÷ $4,553,800K
= 14.01%
Return on Assets (ROA) Analysis for Waters Corporation:
The Return on Assets (ROA) is a key financial ratio that measures a company's efficiency in generating profits from its assets. It indicates how well a company utilizes its assets to generate earnings.
Based on the provided data, Waters Corporation's ROA has shown fluctuations over the past few years. As of December 31, 2024, the ROA was 14.01%, which indicates that the company generated $0.1401 in profit for every dollar of assets it holds.
The ROA trend for Waters Corporation shows a gradual decline from a peak of 23.17% on March 31, 2022, to the current level. This declining trend may suggest that the company's asset utilization efficiency has decreased over time. It is essential for management to investigate the factors contributing to this decline and implement strategies to improve asset utilization.
Overall, a ROA of 14.01% as of December 31, 2024, reflects Waters Corporation's ability to generate profits from its assets, but there is room for improvement in optimizing asset efficiency to enhance overall profitability.
Peer comparison
Dec 31, 2024