Topbuild Corp (BLD)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 878,825 | 797,164 | 476,419 | 355,046 | 289,523 |
| Total assets | US$ in thousands | 5,162,850 | 4,606,830 | 4,258,530 | 2,815,280 | 2,603,960 |
| Operating ROA | 17.02% | 17.30% | 11.19% | 12.61% | 11.12% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $878,825K ÷ $5,162,850K
= 17.02%
TopBuild Corp's operating return on assets (ROA) has fluctuated over the past five years, ranging from 11.12% in 2019 to 17.30% in 2022. The operating ROA for the latest year, 2023, is 17.02%. This indicates that, on average, the company generated 17.02 cents of operating income for each dollar of assets it holds.
The trend of increasing operating ROA from 2019 to 2022 suggests that TopBuild Corp has been effectively utilizing its assets to generate operating income during this period. However, the slight decrease in 2023 compared to 2022 might indicate a dip in asset efficiency or profitability.
Overall, a higher operating ROA indicates greater efficiency in utilizing assets to generate operating profits, which can be a positive sign for investors and stakeholders. It is important for TopBuild Corp to monitor and potentially improve its operating ROA to ensure sustainable profitability and asset utilization in the future.