Werner Enterprises Inc (WERN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 34,233 | 112,382 | 241,256 | 259,052 | 169,078 |
| Total assets | US$ in thousands | 3,052,240 | 3,157,940 | 3,097,260 | 2,589,920 | 2,156,680 |
| ROA | 1.12% | 3.56% | 7.79% | 10.00% | 7.84% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $34,233K ÷ $3,052,240K
= 1.12%
Based on the provided data, Werner Enterprises Inc's return on assets (ROA) has shown fluctuations over the past few years. In December 31, 2020, the ROA was 7.84%, which increased to 10.00% by December 31, 2021. However, there was a decline in ROA to 7.79% by December 31, 2022. This declining trend continued as the ROA dropped further to 3.56% by December 31, 2023, and significantly decreased to 1.12% by December 31, 2024.
The overall trend indicates that despite the initial increase in ROA, Werner Enterprises Inc's efficiency in generating profits from its assets has deteriorated in the later years. This declining ROA could be a concerning factor for stakeholders as it signifies a lower level of profitability relative to the company's asset base. Further analysis and investigation into the company's operational efficiency and asset management may be warranted to address the decline in ROA and potentially improve future financial performance.
Peer comparison
Dec 31, 2024