Graco Inc (GGG)

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 570,098 646,843 572,700 531,323 391,718
Total assets US$ in thousands 3,139,210 2,722,010 2,438,900 2,443,200 1,988,130
Operating ROA 18.16% 23.76% 23.48% 21.75% 19.70%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $570,098K ÷ $3,139,210K
= 18.16%

Graco Inc's operating return on assets (operating ROA) has shown a generally positive trend over the past five years, increasing from 19.70% as of December 31, 2020, to 23.76% as of December 31, 2023. This indicates that the company has been able to generate a higher operating profit relative to its total assets over this period.

However, there was a slight decrease in operating ROA to 18.16% as of December 31, 2024. This decline may suggest a decrease in the company's operating efficiency in utilizing its assets to generate profits or changes in the business environment impacting profitability.

Overall, the company has demonstrated strong operating performance in recent years based on the upward trend in operating ROA, but the recent decline in the ratio warrants further investigation to understand the factors driving this change and to assess the company's operational effectiveness and asset utilization strategies.