Olympic Steel Inc (ZEUS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 44,529 | 90,931 | 121,051 | -5,595 | 3,856 |
| Total assets | US$ in thousands | 984,835 | 891,627 | 1,023,570 | 1,023,570 | 649,555 |
| ROA | 4.52% | 10.20% | 11.83% | -0.55% | 0.59% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $44,529K ÷ $984,835K
= 4.52%
Olympic Steel Inc.'s return on assets (ROA) fluctuated over the past five years. The ROA was positive in all years, indicating that the company generated a return on its assets. However, there was a significant decline in ROA from 2021 to 2023, dropping from 11.83% to 4.52%. This decrease suggests that Olympic Steel Inc. may have become less efficient in generating profits from its assets in recent years.
The highest ROA of 11.83% was recorded in 2021, indicating that the company was most effective in utilizing its assets to generate profits during that year. Conversely, the negative ROA of -0.87% in 2020 implies that Olympic Steel Inc. experienced a period of unprofitability relative to its asset base.
Overall, Olympic Steel Inc.'s ROA has shown variability, with both positive and negative trends observed over the five-year period. This indicates fluctuations in the company's ability to generate profits from its assets and underscores the importance of closely monitoring and analyzing financial performance metrics.
Peer comparison
Dec 31, 2023