Benchmark Electronics Inc (BHE)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 63,327 | 64,315 | 68,229 | 35,770 | 14,055 |
| Total assets | US$ in thousands | 2,139,460 | 2,274,760 | 2,227,330 | 1,903,880 | 1,744,240 |
| ROA | 2.96% | 2.83% | 3.06% | 1.88% | 0.81% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $63,327K ÷ $2,139,460K
= 2.96%
Based on the provided data for Benchmark Electronics Inc's return on assets (ROA) over the five-year period from December 31, 2020, to December 31, 2024, the company's ROA has shown a positive trend, increasing from 0.81% in 2020 to 2.96% in 2024.
The ROA of 0.81% in 2020 indicates that for every dollar of assets the company had, it generated a return of 0.81 cents. This suggests a relatively lower efficiency in asset utilization. However, the subsequent years show significant improvement in asset efficiency, with the ROA increasing to 1.88% in 2021, 3.06% in 2022, and then stabilizing around 2.83% in 2023 and 2.96% in 2024.
The upward trend in ROA signifies that Benchmark Electronics Inc has been able to generate higher returns from its assets over the years, reflecting improved operational efficiency, profitability, or potentially better asset management strategies. It is important for the company to sustain this positive trend in ROA to demonstrate continued effectiveness in utilizing its assets to generate profits for its shareholders.
Peer comparison
Dec 31, 2024