Balchem Corporation (BCPC)
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 | 182,909 | 159,193 | 145,186 | 127,502 | 111,147 |
| Total assets | US$ in thousands | 1,575,370 | 1,597,210 | 1,624,510 | 1,199,320 | 1,165,840 |
| Operating ROA | 11.61% | 9.97% | 8.94% | 10.63% | 9.53% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $182,909K ÷ $1,575,370K
= 11.61%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. In the case of Balchem Corporation, the Operating ROA has shown variability over the years:
- In December 2020, the Operating ROA was 9.53%, indicating that the company generated 9.53 cents of operating income for every dollar of assets.
- By December 2021, the Operating ROA improved to 10.63%, suggesting better operational efficiency and profitability.
- However, in December 2022, the Operating ROA decreased to 8.94%, signaling a potential decrease in operating income generated relative to the assets employed.
- The ratio rebounded in December 2023 to 9.97%, indicating a recovery in profitability.
- Finally, by December 2024, the Operating ROA reached 11.61%, the highest level in the provided data series, which implies that the company was able to significantly increase operating income relative to its asset base.
Overall, the trend in Balchem Corporation's Operating ROA shows fluctuations over the years, with both improvements and declines. It is essential for stakeholders to monitor this ratio to assess the company's operational efficiency and profitability in utilizing its assets effectively.
Peer comparison
Dec 31, 2024