Balchem Corporation (BCPC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 108,543 | 105,367 | 96,104 | 84,623 | 79,671 |
| Total assets | US$ in thousands | 1,597,210 | 1,624,510 | 1,199,320 | 1,165,840 | 1,155,680 |
| ROA | 6.80% | 6.49% | 8.01% | 7.26% | 6.89% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $108,543K ÷ $1,597,210K
= 6.80%
The return on assets (ROA) for Balchem Corp. has shown a relatively stable trend over the past five years. The company's ROA ranged from 6.49% in 2022 to 8.01% in 2021, with the latest figure standing at 6.80% in 2023. This indicates that, on average, for every dollar of assets the company holds, it generates a return of around 6.80%.
The consistency in ROA performance suggests that Balchem Corp. has been effectively utilizing its assets to generate profits over the years. However, a downward trend from the peak in 2021 may indicate a slight decrease in asset efficiency in the most recent year.
Further analysis would be needed to understand the drivers behind these changes and to assess whether they are sustainable or temporary. Overall, the company's ROA performance demonstrates its ability to generate returns for its stakeholders relative to its asset base.
Peer comparison
Dec 31, 2023