Graco Inc (GGG)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Operating income (ttm) US$ in thousands 570,097 610,012 627,478 623,171 646,843 629,417 609,377 601,005 572,700 564,787 546,237 531,400 531,323 518,856 519,262 430,192 391,718 363,759 342,153 409,741
Total assets US$ in thousands 3,139,210 2,975,640 2,879,900 2,786,820 2,722,010 2,674,920 2,707,720 2,546,260 2,438,900 2,438,200 2,404,280 2,319,440 2,443,200 2,377,330 2,229,200 2,087,720 1,988,130 1,994,000 1,962,460 1,947,340
Operating ROA 18.16% 20.50% 21.79% 22.36% 23.76% 23.53% 22.51% 23.60% 23.48% 23.16% 22.72% 22.91% 21.75% 21.83% 23.29% 20.61% 19.70% 18.24% 17.43% 21.04%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $570,097K ÷ $3,139,210K
= 18.16%

Graco Inc's operating return on assets (ROA) has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The operating ROA started at a strong level of 21.04% in March 2020, indicating that the company was generating $0.21 in operating income for every $1 of assets deployed.

Subsequently, there was a slight decrease in operating ROA to 17.43% by June 2020, before gradually increasing to 23.29% by June 2021, reflecting improved efficiency in asset utilization and/or profitability. Over the following quarters, the operating ROA fluctuated within a relatively narrow range, showing some stability in the company's ability to generate operating income from its assets.

However, in the last quarter of 2024, the operating ROA decreased notably to 18.16%, signaling a decline in the efficiency of Graco Inc in generating operating income relative to its asset base. This decrease might suggest potential challenges or changes impacting the company's operational performance.

Overall, Graco Inc's operating ROA has exhibited a mix of positive and negative movements over the period under review, which could be indicative of changing market conditions, operational strategies, or the effectiveness of asset management within the company. Further analysis would be needed to determine the underlying causes of these fluctuations and to assess the company's overall financial health and performance.