NewMarket Corporation (NEU)

Operating return on assets (Operating 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
Operating income (ttm)	US$ in thousands	590,036	558,612	521,514	498,804	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
Total assets	US$ in thousands	3,129,540	3,166,280	3,150,070	3,157,500	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
Operating ROA		18.85%	17.64%	16.56%	15.80%	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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $590,036K ÷ $3,129,540K
= 18.85%

NewMarket Corporation's operating return on assets (ROA) has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The trend shows a gradual decline in operating ROA from 18.83% on March 31, 2020, to 10.08% on December 31, 2021. This decline may indicate potential operational inefficiencies or decreasing profitability during this period.

However, there was a slight recovery in operating ROA starting from March 31, 2022, and it increased steadily to reach 18.85% by December 31, 2024. This improvement suggests that the company may have implemented strategies to enhance operational efficiency and profitability.

Overall, the fluctuations in NewMarket Corporation's operating ROA indicate that the company has experienced both challenges and successes in optimizing its assets to generate operating income. It is essential for stakeholders to monitor this ratio continuously to assess the company's operational performance and financial health.