NewMarket Corporation (NEU)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	462,413	388,864	279,538	190,908	270,568
Total assets	US$ in thousands	3,129,540	2,308,870	2,406,820	2,558,440	1,933,880
ROA		14.78%	16.84%	11.61%	7.46%	13.99%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $462,413K ÷ $3,129,540K
= 14.78%

NewMarket Corporation's return on assets (ROA) has shown fluctuations over the past five years. In December 31, 2020, the ROA was 13.99%, indicating that for every dollar of assets, the company generated a return of approximately 14 cents. Subsequently, in December 31, 2021, the ROA decreased to 7.46%, reflecting a decline in the company's efficiency in generating profits from its assets.

However, the ROA rebounded in December 31, 2022, reaching 11.61%, suggesting an improvement in the company's asset utilization and profitability. The trend continued positively in December 31, 2023, with an ROA of 16.84%, indicating that the company was able to significantly increase its profitability relative to its asset base.

In the most recent year, December 31, 2024, the ROA slightly decreased to 14.78%. Despite the slight decline, the company maintained a relatively high level of return on assets, suggesting efficient management of its resources to generate profits.

Overall, NewMarket Corporation's ROA has shown variability over the years, with notable fluctuations in performance. The company's ability to effectively utilize its assets to generate profits has improved in recent years, as evidenced by the increasing trend in ROA.