IDEX Corporation (IEX)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 505,000 596,100 586,900 449,400 377,800
Total assets US$ in thousands 6,745,300 5,865,200 5,511,900 4,917,200 4,414,400
ROA 7.49% 10.16% 10.65% 9.14% 8.56%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $505,000K ÷ $6,745,300K
= 7.49%

The return on assets (ROA) measures a company's ability to generate profit from its assets. Looking at the data provided for IDEX Corporation, we observe a fluctuating trend in ROA over the past five years.

As of December 31, 2020, the ROA stood at 8.56%, indicating that for every dollar of assets, the company generated 8.56 cents in profit. Subsequently, there was an improvement in ROA to 9.14% by December 31, 2021, followed by a significant increase to 10.65% by December 31, 2022. This rise suggests that the company became more efficient in utilizing its assets to generate earnings.

However, the ROA slightly decreased to 10.16% by December 31, 2023, which could be an indication of changes in the company's asset base or profitability. Finally, by December 31, 2024, the ROA dropped to 7.49%, signaling a decline in the company's ability to generate profits relative to its assets.

Overall, the fluctuating trend in ROA for IDEX Corporation indicates varying levels of asset efficiency and profitability over the five-year period, highlighting the importance of monitoring and analyzing this metric to assess the company's financial performance.