NewMarket Corporation (NEU)

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	483,045	355,139	257,782	311,802	337,321
Total assets	US$ in thousands	2,308,870	2,406,820	2,558,440	1,933,880	1,885,130
Operating ROA		20.92%	14.76%	10.08%	16.12%	17.89%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $483,045K ÷ $2,308,870K
= 20.92%

NewMarket Corp.'s operating return on assets (operating ROA) has varied over the past five years. The trend indicates that in Dec 31, 2023, the operating ROA was 20.92%, effectively generating a return of 20.92% on the company's assets. This represents an improvement compared to the previous year's operating ROA of 14.76% in Dec 31, 2022.

In comparison to Dec 31, 2021, where the operating ROA was 10.08%, there has been a substantial increase in the company's operational efficiency in generating profits from its assets in Dec 31, 2023. However, it is noted that the operating ROA was higher in Dec 31, 2029, at 17.89%, and Dec 31, 2020, at 16.12%.

Overall, the recent increase in operating ROA signifies that NewMarket Corp. has been more effective in utilizing its assets to generate operating profit, indicating improved operational performance and efficiency as of Dec 31, 2023.