NewMarket Corporation (NEU)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 388,864 | 279,538 | 190,908 | 270,568 | 254,286 |
| Total assets | US$ in thousands | 2,308,870 | 2,406,820 | 2,558,440 | 1,933,880 | 1,885,130 |
| ROA | 16.84% | 11.61% | 7.46% | 13.99% | 13.49% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $388,864K ÷ $2,308,870K
= 16.84%
The Return on Assets (ROA) for NewMarket Corp. has shown varying trends over the past five years. In 2023, the ROA increased significantly to 16.78%, indicating that the company generated $16.78 in net income for every $100 of assets it owns. This improvement suggests that NewMarket Corp. efficiently utilized its assets to generate profits.
The ROA in 2022 was 11.58%, which was lower than in 2023 but still higher than in 2021 and 2019. This indicates that the company's profitability decreased from the previous year but remained relatively strong compared to prior periods.
In 2021, the ROA was 7.44%, reflecting a lower return on assets compared to the two subsequent years. However, in 2020, the company experienced a relatively high ROA of 13.97%, showing a strong performance in asset utilization.
Furthermore, in 2019, the ROA was 13.47%, similar to the figure in 2020, signifying consistent asset efficiency in those years.
Overall, the trend in NewMarket Corp.'s ROA indicates fluctuations in asset utilization efficiency, with 2023 showing a notable improvement in generating profits relative to its asset base. It is essential for the company to maintain or improve its ROA over time to ensure sustainable profitability and effective utilization of its assets.
Peer comparison
Dec 31, 2023