Return on Assets (ROA)
since 2005
Calculation
Newmont Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Newmont stockholders1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | -4.49% | = | 100 | × | (2,494) | ÷ | 55,506) |
| Dec 31, 2022 | -1.11% | = | 100 | × | (429) | ÷ | 38,482) |
| Dec 31, 2021 | 2.87% | = | 100 | × | 1,166) | ÷ | 40,564) |
| Dec 31, 2020 | 6.84% | = | 100 | × | 2,829) | ÷ | 41,369) |
| Dec 31, 2019 | 7.02% | = | 100 | × | 2,805) | ÷ | 39,974) |
| Dec 31, 2018 | 1.65% | = | 100 | × | 341) | ÷ | 20,715) |
| Dec 31, 2017 | -0.48% | = | 100 | × | (98) | ÷ | 20,563) |
| Dec 31, 2016 | -2.98% | = | 100 | × | (627) | ÷ | 21,031) |
| Dec 31, 2015 | 0.87% | = | 100 | × | 220) | ÷ | 25,182) |
| Dec 31, 2014 | 2.04% | = | 100 | × | 508) | ÷ | 24,916) |
| Dec 31, 2013 | -9.94% | = | 100 | × | (2,462) | ÷ | 24,764) |
| Dec 31, 2012 | 6.10% | = | 100 | × | 1,809) | ÷ | 29,650) |
| Dec 31, 2011 | 1.33% | = | 100 | × | 366) | ÷ | 27,474) |
| Dec 31, 2010 | 8.87% | = | 100 | × | 2,277) | ÷ | 25,663) |
| Dec 31, 2009 | 5.82% | = | 100 | × | 1,297) | ÷ | 22,299) |
| Dec 31, 2008 | 5.39% | = | 100 | × | 853) | ÷ | 15,839) |
| Dec 31, 2007 | -12.09% | = | 100 | × | (1,886) | ÷ | 15,598) |
| Dec 31, 2006 | 5.07% | = | 100 | × | 791) | ÷ | 15,601) |
| Dec 31, 2005 | 2.30% | = | 100 | × | 322) | ÷ | 13,992) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The Return on Assets (ROA) from 2005 to 2023 is characterized by extreme volatility, reflecting inconsistent earnings efficiency relative to a substantially expanding asset base. The trend is marked by cyclical peaks and deep troughs, suggesting a high sensitivity to external market pressures or significant non-cash adjustments.
- Volatility and Performance Cycles
- The ROA exhibited severe fluctuations over the analyzed period. An early peak of 8.87% in 2010 was interrupted by significant negative returns in 2007 (-12.09%) and 2013 (-9.94%). A secondary recovery phase occurred between 2018 and 2020, with ROA reaching a high of 7.02% in 2019. However, this period of improvement was short-lived, as returns deteriorated sharply to -4.49% by the end of 2023.
- Asset Base Expansion and Utilization
- Total assets grew aggressively from US$ 13.99 billion in 2005 to US$ 55.51 billion in 2023. A critical shift occurred between 2018 and 2019, where the asset base nearly doubled from US$ 20.72 billion to US$ 39.97 billion. Despite this massive increase in resources, the inability to maintain positive net income in the final two years of the period indicates a decline in asset productivity and a failure to translate the expanded balance sheet into sustainable profit.
- Net Income Divergence
- Net income attributable to stockholders showed a lack of stability, mirroring the erratic ROA. While the company achieved peak earnings of US$ 2.83 billion in 2020, it experienced severe losses in 2007, 2013, and most notably in 2023, with a net loss of US$ 2.49 billion. The divergence between the record-high asset levels in 2023 and the corresponding negative ROA suggests significant impairments or operational headwinds that outweighed the scale of the company's investments.
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Comparison to Competitors
Newmont Corp., ROA, long-term trends, comparison to competitors
| Newmont Corp. | Freeport-McMoRan Inc. | |
|---|---|---|
| Dec 31, 2023 | -4.49% | 3.52% |
| Dec 31, 2022 | -1.11% | 6.79% |
| Dec 31, 2021 | 2.87% | 8.97% |
| Dec 31, 2020 | 6.84% | 1.42% |
| Dec 31, 2019 | 7.02% | -0.59% |
| Dec 31, 2018 | 1.65% | 6.16% |
| Dec 31, 2017 | -0.48% | 4.87% |
| Dec 31, 2016 | -2.98% | -11.13% |
| Dec 31, 2015 | 0.87% | -26.27% |
| Dec 31, 2014 | 2.04% | -2.22% |
| Dec 31, 2013 | -9.94% | 4.19% |
| Dec 31, 2012 | 6.10% | 8.58% |
| Dec 31, 2011 | 1.33% | 14.22% |
| Dec 31, 2010 | 8.87% | 14.76% |
| Dec 31, 2009 | 5.82% | 10.57% |
| Dec 31, 2008 | 5.39% | -47.39% |
| Dec 31, 2007 | -12.09% | 7.32% |
| Dec 31, 2006 | 5.07% | 27.02% |
| Dec 31, 2005 | 2.30% | 17.93% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Materials)
Newmont Corp., ROA, long-term trends, comparison to industry (materials)
| Newmont Corp. | Materials | |
|---|---|---|
| Dec 31, 2023 | -4.49% | 6.68% |
| Dec 31, 2022 | -1.11% | 6.28% |
| Dec 31, 2021 | 2.87% | 6.65% |
| Dec 31, 2020 | 6.84% | 3.40% |
| Dec 31, 2019 | 7.02% | 2.43% |
| Dec 31, 2018 | 1.65% | 5.23% |
| Dec 31, 2017 | -0.48% | 6.22% |
| Dec 31, 2016 | -2.98% | -2.40% |
| Dec 31, 2015 | 0.87% | -13.63% |
| Dec 31, 2014 | 2.04% | 1.48% |
| Dec 31, 2013 | -9.94% | 5.73% |
| Dec 31, 2012 | 6.10% | 8.98% |
| Dec 31, 2011 | 1.33% | 12.44% |
| Dec 31, 2010 | 8.87% | 12.03% |
| Dec 31, 2009 | 5.82% | 9.94% |
| Dec 31, 2008 | 5.39% | -22.98% |
| Dec 31, 2007 | -12.09% | 8.10% |
| Dec 31, 2006 | 5.07% | 14.06% |
| Dec 31, 2005 | 2.30% | 10.70% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).