Name: Return on Assets (ROA)

Definition: ROA shows how efficiently the company turns everything it owns — its entire asset base — into net profit after all costs and taxes. A higher ROA means the business squeezes more profit from its assets. Lower ROA might reflect poor asset utilization or heavy reliance on expensive financing.

Interpretation:
• In '2021', FAF's return on assets was 7.5%, representing returns generated from total assets. Industry average for Specialty Insurers in '2021' stood at -13.6%.
• In '2022', FAF's return on assets was 1.7%, representing returns generated from total assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for Specialty Insurers in '2022' stood at -0.9%. Industry average increased by 12.7% compared to previous year.
• In '2023', FAF's return on assets was 1.4%, representing returns generated from total assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for Specialty Insurers in '2023' stood at -6.5%. Industry average declined by 5.6% from previous year.
• In '2024', FAF's return on assets was 0.8%, representing returns generated from total assets. The decline from '2023' may indicate some operational or financial challenges. Industry average for Specialty Insurers in '2024' stood at -14.4%. Industry average declined by 7.9% from previous year.
Overall, FAF's return on assets has been volatile but showed a downward trend over the past 4 years.

Formula: ROA = Net Income / Total Assets

Good Range: Commonly 5%-15%.