Alamo Group Inc (ALG)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	136,161	101,928	80,245	57,804	63,103
Total assets	US$ in thousands	1,409,390	1,308,510	1,205,740	1,121,860	1,212,760
ROA		9.66%	7.79%	6.66%	5.15%	5.20%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $136,161K ÷ $1,409,390K
= 9.66%

The return on assets (ROA) for Alamo Group Inc. has shown a positive trend over the past five years, increasing steadily from 5.19% in 2019 to 9.66% in 2023. This indicates that the company has been more effective in generating profit from its assets over time. The consistent improvement in ROA suggests that Alamo Group has been able to effectively utilize its assets to generate earnings for shareholders. Overall, the increasing trend in ROA reflects positively on the company's efficiency and profitability in utilizing its assets to generate revenue.

Peer comparison

Dec 31, 2023

Company name

Symbol

ROA

Alamo Group Inc

ALG

9.66%