Green Brick Partners Inc (GRBK)
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 | 476,955 | 355,205 | 356,715 | 225,046 | 119,172 |
Total assets | US$ in thousands | 2,249,990 | 1,904,710 | 1,655,680 | 1,421,870 | 988,847 |
Operating ROA | 21.20% | 18.65% | 21.54% | 15.83% | 12.05% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $476,955K ÷ $2,249,990K
= 21.20%
Green Brick Partners Inc's operating return on assets (operating ROA) has shown a positive trend over the years, increasing from 12.05% as of December 31, 2020, to 21.20% as of December 31, 2024. This upward trend indicates the company's ability to generate operating profits relative to its assets has been improving.
The significant improvement in operating ROA from 2020 to 2024 suggests that Green Brick Partners Inc has been effectively utilizing its assets to generate operating income. This may be attributed to efficient operational management, strategic investments, or improved profitability of its core business activities.
The consistently high operating ROA figures in the range of 15.83% to 21.54% over the years indicate the company's strong operational performance and potential for sustainable growth. However, the slight dip in operating ROA to 18.65% in 2023 should be further investigated to understand any underlying factors that may have influenced this change.
Overall, Green Brick Partners Inc's increasing operating ROA reflects its ability to efficiently utilize its assets to generate operating income and indicates a positive outlook for the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2024