IDEX Corporation (IEX)

Return on assets (ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 505,000 490,400 580,400 577,700 596,100 617,500 587,100 586,700 586,900 575,700 512,742 476,737 449,445 431,713 419,819 388,488 377,778 373,560 374,906 417,251
Total assets US$ in thousands 6,745,300 6,967,500 5,903,300 5,889,400 5,865,200 5,669,600 5,719,900 5,658,000 5,511,900 4,892,600 4,912,800 4,999,700 4,917,200 4,854,580 4,783,000 4,460,730 4,414,400 4,225,600 4,073,590 3,943,680
ROA 7.49% 7.04% 9.83% 9.81% 10.16% 10.89% 10.26% 10.37% 10.65% 11.77% 10.44% 9.54% 9.14% 8.89% 8.78% 8.71% 8.56% 8.84% 9.20% 10.58%

December 31, 2024 calculation

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

ROA, or Return on Assets, is a financial ratio that measures a company's ability to generate profit from its assets. The ratio is calculated by dividing the net income by the average total assets.

Analyzing the trend of IDEX Corporation's ROA from March 31, 2020, to December 31, 2024, we observe the following pattern:
- The ROA was relatively steady around the range of 8% to 10% from 2020 to 2023, indicating a consistent ability to generate earnings from its assets.
- There was a significant increase in ROA in the third quarter of 2022, reaching 11.77%, which suggests a more efficient use of assets to generate profit during that period.
- However, the ROA declined in the following quarters, dropping to 7.04% by the end of September 2024, indicating a decrease in profitability relative to its asset base.
- The company experienced fluctuations in ROA over the analyzed period, showing some variability in its ability to generate returns from its assets.

Overall, the trend in IDEX Corporation's ROA indicates a generally stable performance in terms of asset utilization and profitability, with some fluctuations observed in certain quarters. It is important for the company to closely monitor and manage its assets efficiently to maintain a healthy level of return on assets.