NewMarket Corporation (NEU)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	483,045	491,239	437,541	396,890	355,139	281,037	265,415	252,571	257,782	297,908	333,607	290,617	311,802	303,803	293,217	364,135	337,321	345,585	325,515	293,971
Total assets	US$ in thousands	2,308,870	2,290,400	2,366,140	2,350,770	2,406,820	2,336,840	2,330,670	2,281,550	2,558,440	2,437,220	2,478,710	2,399,390	1,933,880	1,880,120	1,799,140	1,933,680	1,885,130	1,771,000	1,766,980	1,798,190
Operating ROA		20.92%	21.45%	18.49%	16.88%	14.76%	12.03%	11.39%	11.07%	10.08%	12.22%	13.46%	12.11%	16.12%	16.16%	16.30%	18.83%	17.89%	19.51%	18.42%	16.35%

December 31, 2023 calculation

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

The operating return on assets (operating ROA) of NewMarket Corp. has shown a positive trend over the quarters, indicating an improvement in the company's operational efficiency and asset utilization. The operating ROA has increased steadily from 11.07% in Q1 2022 to 20.92% in Q4 2023.

This indicates that, on average, the company generated approximately 20.92% of operating income for every dollar of assets employed in its operations during the most recent quarter. The consistent upward trend in operating ROA suggests that NewMarket Corp. has been able to effectively generate profit from its assets and operations.

The improving operating ROA reflects positively on the company's management of its resources and operational performance. It indicates that NewMarket Corp. is becoming more efficient in utilizing its assets to generate operating income, which can lead to higher profitability and shareholder value in the long run. Further monitoring of this metric will be essential to assess the company's ongoing operational effectiveness.