Alamo Group Inc (ALG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 197,967 | 195,886 | 181,973 | 168,497 | 148,592 | 133,742 | 127,945 | 120,619 | 116,938 | 106,416 | 107,296 | 96,367 | 94,785 | 95,942 | 89,474 | 96,162 | 94,912 | 101,102 | 104,896 | 102,333 |
| Total assets | US$ in thousands | 1,409,390 | 1,455,510 | 1,457,760 | 1,429,210 | 1,308,510 | 1,327,790 | 1,332,380 | 1,338,020 | 1,205,740 | 1,217,780 | 1,208,830 | 1,206,150 | 1,121,860 | 1,173,460 | 1,189,690 | 1,249,880 | 1,212,760 | 856,393 | 866,579 | 852,253 |
| Operating ROA | 14.05% | 13.46% | 12.48% | 11.79% | 11.36% | 10.07% | 9.60% | 9.01% | 9.70% | 8.74% | 8.88% | 7.99% | 8.45% | 8.18% | 7.52% | 7.69% | 7.83% | 11.81% | 12.10% | 12.01% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $197,967K ÷ $1,409,390K
= 14.05%
Operating return on assets (ROA) measures a company's ability to generate operating income from its assets. Alamo Group Inc.'s operating ROA has shown a consistent upward trend over the past eight quarters, indicating improved operational efficiency and asset utilization. The company's operating ROA has increased from 9.01% in Q1 2022 to 14.05% in Q4 2023, reflecting a positive trajectory.
The progressive rise in operating ROA suggests that Alamo Group has been able to enhance its operating performance relative to its asset base. This could be attributed to effective cost management, revenue growth, or a combination of both. The increments in operating ROA indicate that the company is generating more operating income per dollar of assets employed, which is a favorable sign for shareholders and potential investors.
Overall, the consistent improvement in Alamo Group Inc.'s operating ROA demonstrates the company's ability to efficiently utilize its assets to drive operating profitability, which is essential for sustainable growth and value creation.
Peer comparison
Dec 31, 2023