Alamo Group Inc (ALG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 197,967 | 148,592 | 116,938 | 94,785 | 94,912 |
| Total assets | US$ in thousands | 1,409,390 | 1,308,510 | 1,205,740 | 1,121,860 | 1,212,760 |
| Operating ROA | 14.05% | 11.36% | 9.70% | 8.45% | 7.83% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $197,967K ÷ $1,409,390K
= 14.05%
Based on the trend in Alamo Group Inc.'s operating return on assets (operating ROA) over the past five years, there has been a consistent improvement in the company's operational efficiency and asset utilization. The operating ROA has steadily increased from 7.80% in 2019 to 14.05% in 2023.
This indicates that the company has been able to generate more operating income relative to its total assets over the years. The rising trend in operating ROA suggests that Alamo Group Inc. has been effectively managing its operations and utilizing its assets to generate higher returns.
A higher operating ROA reflects the company's ability to generate more operating profits from its assets, which is a positive indicator of operational performance and efficiency. Overall, the increasing trend in Alamo Group Inc.'s operating ROA is a favorable signal for investors and stakeholders, indicating improved operational effectiveness and asset utilization.
Peer comparison
Dec 31, 2023