Alamo Group Inc (ALG)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 164,808 | 197,967 | 148,592 | 116,938 | 93,165 |
| Total assets | US$ in thousands | 1,450,280 | 1,409,390 | 1,308,510 | 1,205,740 | 1,109,330 |
| Operating ROA | 11.36% | 14.05% | 11.36% | 9.70% | 8.40% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $164,808K ÷ $1,450,280K
= 11.36%
The operating return on assets (Operating ROA) for Alamo Group Inc has shown a positive trend over the past five years, increasing from 8.40% as of December 31, 2020, to 11.36% by December 31, 2022, peaking at 14.05% as of December 31, 2023. This indicates that the company's ability to generate operating income from its assets has been improving steadily. However, there was a slight decrease to 11.36% by December 31, 2024.
The increase in Operating ROA suggests that Alamo Group Inc has been managing its assets more efficiently, generating higher operating income relative to its asset base. This trend is generally favorable as it indicates that the company is utilizing its assets effectively to generate profits.
Overall, the improving trend in Operating ROA reflects positively on Alamo Group Inc's operational efficiency and profitability, demonstrating its ability to generate returns from its asset base over the specified period.
Peer comparison
Dec 31, 2024