Graco Inc (GGG)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 486,084 506,511 460,645 439,866 330,456
Total assets US$ in thousands 3,139,210 2,722,010 2,438,900 2,443,200 1,988,130
ROA 15.48% 18.61% 18.89% 18.00% 16.62%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $486,084K ÷ $3,139,210K
= 15.48%

Based on the provided data, Graco Inc's return on assets (ROA) has exhibited a generally positive trend over the past five years. The ROA increased from 16.62% as of December 31, 2020, to 18.89% as of December 31, 2022. This indicates that the company has been efficiently utilizing its assets to generate earnings during this period.

However, there was a slight decline in ROA to 15.48% as of December 31, 2024, compared to the previous year. This decrease may suggest a potential decrease in profitability or less effective asset management by the company.

Overall, Graco Inc's ROA performance shows a positive trend but with some fluctuations in recent years, indicating the need for continued monitoring and analysis to ensure sustainable profitability and efficient asset utilization in the future.