Alamo Group Inc (ALG)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 115,930 | 136,161 | 101,928 | 80,245 | 57,804 |
| Total assets | US$ in thousands | 1,450,280 | 1,409,390 | 1,308,510 | 1,205,740 | 1,109,330 |
| ROA | 7.99% | 9.66% | 7.79% | 6.66% | 5.21% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $115,930K ÷ $1,450,280K
= 7.99%
Based on the data provided, Alamo Group Inc has shown consistent improvement in its return on assets (ROA) over the past five years.
In December 31, 2020, the ROA was reported at 5.21%, which increased to 6.66% by December 31, 2021. This upward trend continued with the ROA reaching 7.79% by December 31, 2022.
The company experienced a significant jump in ROA to 9.66% by December 31, 2023, indicating efficient utilization of its assets to generate profits. However, there was a slight decline in ROA to 7.99% by December 31, 2024.
Overall, the increasing trend in ROA from 2020 to 2023 reflects Alamo Group's effective management of its assets to generate profits for shareholders. Despite the slight decrease in 2024, the company's ROA remains at a healthy level, indicating its ability to generate returns relative to the assets employed.
Peer comparison
Dec 31, 2024