Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
CSX Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Operating Profit Margin
- The operating profit margin remained relatively stable throughout the observed periods, fluctuating mostly between 40% and 42% from March 2019 through December 2020. A notable increase occurred in mid-2021, reaching peaks above 45% in June and September 2021. However, from 2022 onward, there was a gradual decline, with margins settling back to the low 40% range by the first quarter of 2023. This suggests a phase of improved operational efficiency in 2021 followed by a normalization.
- Net Profit Margin
- Net profit margin exhibited a stable trend around 27% from early 2019 through early 2020, after which a slight decrease was observed in the middle of 2020, coinciding with a drop to approximately 26%. A considerable improvement took place in 2021, with margins rising to about 30% by late in the year. From 2022 onwards, the margin experienced a modest decline, hovering around 28% by March 2023, indicating fluctuations likely influenced by external factors impacting net profitability.
- Return on Equity (ROE)
- ROE showed an initial downward trend from around 28% in early 2019 to a low near 20.5% by the end of 2020, reflecting decreasing efficiency in generating returns on shareholders' equity during that period. Starting in 2021, a steady and marked recovery occurred, and by the first quarter of 2023, ROE reached its highest recorded level above 34%. This increase demonstrates enhanced effectiveness in equity utilization in recent periods.
- Return on Assets (ROA)
- ROA trends were somewhat aligned with ROE, starting near 9% in early 2019 and declining to a low point below 7% by late 2020. This dip indicates a reduction in asset efficiency during that timeframe. From 2021 onwards, ROA improved progressively, surpassing 10% by the first quarter of 2023. The upward trajectory of ROA suggests stronger asset management and higher profitability derived from asset base in the latest periods.
Return on Sales
Return on Investment
Operating Profit Margin
CSX Corp., operating profit margin calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating income | 1,464) | 1,459) | 1,579) | 1,703) | 1,282) | 1,366) | 1,436) | 1,691) | 1,101) | 1,215) | 1,141) | 828) | 1,178) | 1,154) | 1,287) | 1,305) | 1,219) | ||||||
| Revenue | 3,706) | 3,730) | 3,895) | 3,815) | 3,413) | 3,427) | 3,292) | 2,990) | 2,813) | 2,825) | 2,648) | 2,255) | 2,855) | 2,885) | 2,978) | 3,061) | 3,013) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 40.97% | 40.55% | 40.76% | 41.49% | 44.01% | 44.67% | 45.66% | 45.65% | 40.65% | 41.22% | 40.41% | 40.53% | 41.80% | 41.59% | 41.49% | 41.03% | 40.72% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 6.37% | 6.68% | 6.67% | 6.47% | 6.54% | 6.98% | 5.76% | 5.27% | 4.24% | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | -4.76% | -5.75% | -7.71% | -9.07% | -13.04% | -21.97% | -28.04% | -36.73% | -47.47% | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 39.22% | 39.87% | 40.71% | 41.59% | 42.90% | 42.83% | 41.98% | 41.35% | 39.80% | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 7.52% | 5.20% | 1.35% | 0.37% | -3.51% | -4.15% | -13.85% | -37.01% | -63.87% | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 12.52% | 13.05% | 13.64% | 13.56% | 13.46% | 13.17% | 11.60% | 11.27% | 10.48% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022)
÷ (RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022
+ RevenueQ2 2022)
= 100 × (1,464 + 1,459 + 1,579 + 1,703)
÷ (3,706 + 3,730 + 3,895 + 3,815)
= 40.97%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited a general upward trend from early 2019 through 2023, beginning at approximately $3,013 million in March 2019 and increasing to a peak of $3,895 million by September 2022. Notable declines occurred in mid-2020, likely influenced by external economic factors, with revenue dipping to a low of $2,255 million in June 2020. Following this dip, revenue gradually recovered and stabilized around the $3,700 million mark in early 2023.
- Operating Income Patterns
- Operating income showed more volatility compared to revenue. It started at $1,219 million in March 2019 and reached a low of $828 million in June 2020, aligning with the revenue decline period. Subsequently, operating income surged sharply, peaking at $1,703 million in June 2022 before slightly moderating but remaining robust around $1,464 million in March 2023. This trend suggests improved operational efficiency or cost management in the latter periods.
- Operating Profit Margin Analysis
- The operating profit margin remained relatively stable, fluctuating mostly between 40% and 42% from 2019 to early 2020. A significant improvement occurred starting in early 2021, with margins exceeding 44% and reaching up to 45.66% in the middle of 2021. Thereafter, the margin gradually converged back to near 41% by early 2023. This indicates periods of enhanced profitability despite fluctuations in income and revenue, possibly due to operational adjustments or pricing strategies.
- Seasonal and External Influences
- Mid-2020 marked a clear disruption in both revenue and operating income, which may correlate with broader economic downturns or sector-specific challenges. Recovery patterns post-mid-2020 were strong, suggesting resilience and adaptability. The peak in margins in 2021 further supports the presence of effective management responses to earlier disruptions.
- Overall Financial Health Insights
- The company demonstrated steady revenue growth with intermittent pressure points aligned with macroeconomic conditions. The operating income volatility contrasts with the steadier revenue, reflecting operational leverage or cost structure sensitivities. Sustained high operating margins post-2020 imply strong operational discipline. The data presents a positive outlook with signs of recovery and profitability enhancement after a period of significant challenge.
Net Profit Margin
CSX Corp., net profit margin calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings | 987) | 1,018) | 1,111) | 1,178) | 859) | 934) | 968) | 1,173) | 706) | 760) | 736) | 499) | 770) | 771) | 856) | 870) | 834) | ||||||
| Revenue | 3,706) | 3,730) | 3,895) | 3,815) | 3,413) | 3,427) | 3,292) | 2,990) | 2,813) | 2,825) | 2,648) | 2,255) | 2,855) | 2,885) | 2,978) | 3,061) | 3,013) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 28.35% | 28.05% | 28.05% | 28.24% | 29.98% | 30.19% | 30.26% | 29.93% | 25.62% | 26.13% | 26.08% | 26.39% | 27.74% | 27.90% | 27.90% | 27.87% | 27.84% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 3.79% | 4.09% | 5.60% | 5.49% | 5.88% | 6.23% | 3.85% | 3.28% | 2.50% | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | -9.95% | -28.68% | -30.45% | -39.39% | -29.52% | -2.84% | -15.87% | -7.97% | -36.50% | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 27.91% | 28.13% | 28.95% | 29.23% | 30.06% | 29.92% | 29.19% | 28.60% | 27.02% | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 3.93% | 1.64% | -1.85% | -3.43% | -6.85% | -7.97% | -16.19% | -37.89% | -63.43% | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 10.90% | 11.51% | 11.07% | 10.92% | 10.90% | 13.25% | 6.83% | 6.57% | 5.78% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Net profit margin = 100
× (Net earningsQ1 2023
+ Net earningsQ4 2022
+ Net earningsQ3 2022
+ Net earningsQ2 2022)
÷ (RevenueQ1 2023
+ RevenueQ4 2022
+ RevenueQ3 2022
+ RevenueQ2 2022)
= 100 × (987 + 1,018 + 1,111 + 1,178)
÷ (3,706 + 3,730 + 3,895 + 3,815)
= 28.35%
2 Click competitor name to see calculations.
The financial data reveals several patterns and trends over the observed periods.
- Net Earnings
- Net earnings displayed fluctuations throughout the quarters, with a notable dip during the mid-2020 periods, coinciding with the global economic disruptions observed in that year. Earnings decreased from 770 million in March 2020 to a low of 499 million in June 2020, followed by a recovery reaching peaks above 1100 million in March and June 2022. Despite the ups and downs, the net earnings as of March 2023 stayed relatively strong at 987 million, reflecting resilience and recovery from prior declines.
- Revenue
- Revenue trends closely mirror the earnings fluctuations, starting at approximately 3,013 million in March 2019 and dipping significantly in mid-2020 to around 2,255 million in June 2020. Thereafter, revenue recovered steadily, peaking at 3,895 million in September 2022 before slightly declining to 3,706 million by March 2023. This demonstrates a robust comeback after the downturn observed in 2020, with revenues reaching new highs during 2021 and 2022.
- Net Profit Margin
- The net profit margin maintained relative stability across the periods, generally oscillating between roughly 26% and 30%. There was a slight decrease during 2020, coinciding with the revenue and earnings drops, where margins declined to around 26.08%. However, a marked improvement appeared in 2021, with margins rising to about 30%, indicating enhanced profitability efficiency. The margin eased a bit during 2022 but remained healthy, hovering near 28%, and returned to 28.35% by the first quarter of 2023.
Overall, the data indicates a temporary but significant impact during mid-2020, with both revenue and net earnings dropping notably, likely linked to adverse external conditions. Following this period, there was a strong recovery evidenced by rising revenues and net earnings, supported by stable and improving profit margins. The company demonstrated effective management of profitability through challenging times and succeeded in regaining and surpassing prior financial performance levels by the end of the observed timeframe.
Return on Equity (ROE)
CSX Corp., ROE calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings | 987) | 1,018) | 1,111) | 1,178) | 859) | 934) | 968) | 1,173) | 706) | 760) | 736) | 499) | 770) | 771) | 856) | 870) | 834) | ||||||
| Shareholders’ equity, attributable to CSX | 12,326) | 12,615) | 12,874) | 13,131) | 13,184) | 13,490) | 13,163) | 13,426) | 13,151) | 13,101) | 12,713) | 12,150) | 11,871) | 11,848) | 11,864) | 12,276) | 12,428) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | 34.84% | 33.02% | 31.71% | 30.00% | 29.84% | 28.03% | 27.40% | 25.14% | 20.54% | 21.11% | 21.84% | 23.84% | 27.52% | 28.11% | 28.68% | 28.03% | 27.74% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 14.28% | 15.34% | 20.94% | 19.71% | 20.96% | 21.64% | 13.78% | 11.65% | 9.18% | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | -44.86% | -124.54% | -141.59% | -151.07% | -70.86% | -3.43% | -16.91% | -7.20% | -28.97% | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 56.19% | 57.54% | 60.21% | 53.89% | 57.26% | 46.06% | 44.49% | 41.12% | 32.09% | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 28.79% | 10.69% | -15.35% | -30.80% | -54.75% | -39.05% | -59.20% | -112.74% | -129.12% | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 53.80% | 58.36% | 65.94% | 67.12% | 69.80% | 90.44% | 53.57% | 56.25% | 72.34% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
ROE = 100
× (Net earningsQ1 2023
+ Net earningsQ4 2022
+ Net earningsQ3 2022
+ Net earningsQ2 2022)
÷ Shareholders’ equity, attributable to CSX
= 100 × (987 + 1,018 + 1,111 + 1,178)
÷ 12,326 = 34.84%
2 Click competitor name to see calculations.
The financial data reveals several notable trends regarding net earnings, shareholders’ equity, and return on equity (ROE) over the analyzed quarters.
- Net Earnings
- Net earnings exhibit seasonal fluctuations with peaks and troughs generally occurring within each fiscal year. The reported values show a decline from early 2019 through mid-2020, reaching a low point in June 2020 at 499 million USD. Subsequent quarters demonstrate recovery, with net earnings rising sharply by mid-2021 and maintaining higher levels through 2022 and into early 2023. The highest value within the analyzed period is observed in June 2021 at 1,173 million USD. Although fluctuations remain, the overall trajectory from mid-2020 onward suggests strengthening profitability.
- Shareholders’ Equity
- Shareholders’ equity shows relatively stable behavior throughout the period, with minor variations. Starting at 12,428 million USD in March 2019, equity levels fluctuate modestly across quarters, reaching a peak of 13,490 million USD in December 2021 before gradually declining to 12,326 million USD in March 2023. Despite these changes, the equity base remains broadly consistent without significant volatility, implying steady capital structure management.
- Return on Equity (ROE)
- ROE generally declines from early 2019 through the end of 2020, moving from approximately 28% down to around 21%. Following this period, ROE reverses course and shows a consistent upward trend, increasing from about 20.5% in March 2021 to a high of nearly 35% by March 2023. This improvement indicates enhanced profitability relative to shareholders’ equity in the latter periods and suggests more effective utilization of equity capital over time.
In summary, the data indicates a recovery in net earnings and an improvement in return on equity after a dip in mid-2020, coupled with stable shareholders’ equity levels. The increasing ROE towards the end of the period reflects strengthening operational performance and efficiency in generating returns for equity holders.
Return on Assets (ROA)
CSX Corp., ROA calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings | 987) | 1,018) | 1,111) | 1,178) | 859) | 934) | 968) | 1,173) | 706) | 760) | 736) | 499) | 770) | 771) | 856) | 870) | 834) | ||||||
| Total assets | 41,478) | 41,912) | 42,242) | 40,366) | 40,452) | 40,531) | 40,129) | 40,015) | 39,692) | 39,793) | 39,443) | 38,904) | 38,834) | 38,257) | 38,795) | 37,924) | 38,154) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 10.35% | 9.94% | 9.66% | 9.76% | 9.73% | 9.33% | 8.99% | 8.43% | 6.80% | 6.95% | 7.04% | 7.44% | 8.41% | 8.71% | 8.77% | 9.07% | 9.04% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| FedEx Corp. | 4.18% | 4.45% | 6.11% | 5.84% | 6.21% | 6.32% | 3.66% | 3.02% | 2.30% | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | -10.38% | -28.47% | -28.43% | -32.45% | -19.26% | -1.28% | -6.39% | -2.82% | -11.37% | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 10.61% | 10.69% | 10.82% | 10.63% | 10.64% | 10.27% | 9.93% | 9.48% | 8.44% | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 2.73% | 1.09% | -1.09% | -1.73% | -2.87% | -2.88% | -4.64% | -7.78% | -10.90% | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 14.93% | 16.24% | 16.09% | 15.60% | 15.35% | 18.57% | 9.81% | 9.37% | 8.17% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
ROA = 100
× (Net earningsQ1 2023
+ Net earningsQ4 2022
+ Net earningsQ3 2022
+ Net earningsQ2 2022)
÷ Total assets
= 100 × (987 + 1,018 + 1,111 + 1,178)
÷ 41,478 = 10.35%
2 Click competitor name to see calculations.
The financial performance demonstrates notable fluctuations in net earnings and a generally stable asset base over the observed periods. The analysis reveals several important trends in profitability and asset utilization efficiency.
- Net Earnings
- Net earnings experienced variability throughout the quarters. Initially, from March 2019 to March 2020, earnings ranged modestly between approximately 770 million and 870 million USD, with a slight decreasing trend visible in late 2019 and early 2020. A significant decline occurred during the middle of 2020, with earnings dropping to a low of 499 million USD in June 2020, likely reflecting external pressures impacting operational results.
- Following the mid-2020 trough, net earnings recovered substantially, reaching a peak of 1178 million USD in March 2022. This recovery phase was characterized by consistent earnings above 900 million for several quarters and demonstrates resilience and improvement in profitability. The most recent quarters continued to show strong earnings above 1000 million USD, albeit with a slight decline to 987 million USD in March 2023.
- Total Assets
- Total assets remained relatively stable throughout the period, with values fluctuating narrowly between approximately 38,000 million and 42,200 million USD. There is a subtle upward trend noticeable from mid-2021 to late 2022, peaking at 42,242 million USD in September 2022, followed by a slight decrease in early 2023.
- This stable asset base indicates controlled asset expansion and suggests that changes in earnings are more likely related to operational performance rather than significant asset growth or contraction.
- Return on Assets (ROA)
- ROA trends mirrored net earnings performance to some extent but exhibited more detailed shifts in asset efficiency. ROA declined from around 9.0% in early 2019 to below 7% by the end of 2020, reflecting lower profitability relative to assets during that period.
- Beginning in early 2021, ROA improved steadily, reaching its highest point of 10.35% in March 2023. This increase indicates enhanced efficiency in generating earnings from the existing asset base and suggests successful operational management in improving returns despite the relatively stable asset level.
- Overall Financial Insights
- The data exhibit a clear dip in earnings and returns during mid-2020, likely correlated with external economic disruptions. Subsequently, there is a robust recovery phase with increasing earnings and amplified ROA, implying stronger profitability and operational effectiveness.
- The company managed to sustain a relatively flat asset level, indicating emphasis on optimizing existing resources rather than expansive asset investment. The continual improvement in ROA in recent quarters shows growing profitability resilience and efficient asset utilization.