Topbuild Corp (BLD)
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 | 886,343 | 878,825 | 797,164 | 476,419 | 355,046 |
| Total assets | US$ in thousands | 4,735,430 | 5,162,850 | 4,606,830 | 4,258,530 | 2,815,280 |
| Operating ROA | 18.72% | 17.02% | 17.30% | 11.19% | 12.61% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $886,343K ÷ $4,735,430K
= 18.72%
Topbuild Corp's operating return on assets (operating ROA) has displayed varying trends over the last five years. The trend of the operating ROA shows a decrease from 12.61% as of December 31, 2020, to 11.19% as of December 31, 2021. However, the trend then reverses, showing an improvement to 17.30% as of December 31, 2022, and maintaining stability around the high levels in the following years, with 17.02% as of December 31, 2023, and 18.72% as of December 31, 2024. This indicates that Topbuild Corp's ability to generate operating income from its assets improved significantly in recent years, reaching its highest point at the end of 2024. The increasing trend in operating ROA suggests efficient utilization of assets to generate operating profits, which can be a positive indicator of the company's operational efficiency and profitability.