Green Brick Partners Inc (GRBK)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 355,105 | 352,982 | 227,690 | 122,370 | 70,223 |
| Total assets | US$ in thousands | 1,902,830 | 1,655,680 | 1,421,870 | 988,847 | 875,539 |
| Operating ROA | 18.66% | 21.32% | 16.01% | 12.38% | 8.02% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $355,105K ÷ $1,902,830K
= 18.66%
Green Brick Partners Inc has shown a positive trend in its operating return on assets (ROA) over the past five years. The operating ROA has consistently increased from 8.04% in 2019 to 18.67% in 2023. This indicates the company's ability to generate operating income relative to its total assets has improved significantly over the years.
The upward trend in operating ROA suggests that Green Brick Partners Inc has been effectively utilizing its assets to generate operating income. This could be attributed to improvements in operational efficiency, effective cost management, and possibly better capital allocation decisions.
The substantial increase in the operating ROA from 2020 to 2022, followed by a slight dip in 2023, may signify variations in the company's operational performance during those years. Despite the minor decrease in 2023, the operating ROA remains relatively high compared to the earlier years, indicating the company's ability to maintain profitability.
Overall, the consistent rise in Green Brick Partners Inc's operating ROA reflects positively on the company's operational effectiveness and financial performance, suggesting efficient asset utilization and profitability growth over the years.
Peer comparison
Dec 31, 2023