Graco Inc (GGG)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 424,456 | 416,861 | 428,241 | 429,258 |
| Total assets | US$ in thousands | 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 | 1,692,210 | 1,637,420 | 1,640,550 | 1,549,050 |
| Operating ROA | 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% | 25.08% | 25.46% | 26.10% | 27.71% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $646,843K ÷ $2,722,010K
= 23.76%
Graco Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past few quarters. The operating ROA ranged from a low of 17.43% in June 2020 to a high of 27.71% in March 2019. The average operating ROA over this period was approximately 22.17%.
In recent quarters, the operating ROA has generally been above the historical average, indicating that the company has been effectively utilizing its assets to generate operating income. However, there was a noticeable dip in operating ROA in the first quarter of 2021 to 19.70%, which improved to 23.29% in the second quarter of 2021 before dropping again to 20.61% in the third quarter of 2021.
Overall, Graco Inc's operating ROA performance has been relatively strong, with occasional fluctuations, suggesting efficient asset management and profitability in its operations. The company should continue to monitor and optimize its asset utilization to maintain and potentially improve its operating ROA in the future.
Peer comparison
Dec 31, 2023