Topbuild Corp (BLD)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 614,254 | 555,989 | 324,016 | 247,023 | 190,995 |
| Total assets | US$ in thousands | 5,162,850 | 4,606,830 | 4,258,530 | 2,815,280 | 2,603,960 |
| ROA | 11.90% | 12.07% | 7.61% | 8.77% | 7.33% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $614,254K ÷ $5,162,850K
= 11.90%
TopBuild Corp's return on assets (ROA) has shown a fluctuating trend over the past five years. In 2023, the ROA decreased to 11.90% from 12.07% in 2022, reflecting a slight decline in the company's ability to generate profits from its assets. However, the 2023 ROA is still higher compared to the ROA figures in 2021, 2020, and 2019, indicating an overall improvement in asset utilization efficiency.
The 2021 ROA of 7.61% witnessed a notable increase compared to 2020's ROA of 8.77%, signaling a stronger performance in generating profits relative to total assets in 2021. The 2020 ROA of 8.77% also represented a decline from the 2019 ROA of 7.33%, suggesting a temporary deterioration in asset productivity in that period.
Overall, TopBuild Corp has generally demonstrated a satisfactory ROA performance, with fluctuations over the years likely influenced by factors such as operational efficiency, asset management strategies, and market conditions. The company's ability to consistently maintain a healthy ROA indicates effective management of its assets to generate profits for shareholders.