NewMarket Corporation (NEU)

Return on assets (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
Net income (ttm)	US$ in thousands	388,864	398,976	350,955	317,803	279,538	206,222	195,034	180,514	190,908	240,586	284,342	254,739	270,568	253,786	225,797	277,622	254,286	266,987	257,663	236,374
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
ROA		16.84%	17.42%	14.83%	13.52%	11.61%	8.82%	8.37%	7.91%	7.46%	9.87%	11.47%	10.62%	13.99%	13.50%	12.55%	14.36%	13.49%	15.08%	14.58%	13.15%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $388,864K ÷ $2,308,870K
= 16.84%

NewMarket Corp.'s return on assets (ROA) has shown a positive trend over the eight quarters analyzed. The ROA has steadily increased from 7.89% in Q1 2022 to a peak of 17.36% in Q3 2023. This indicates that the company has been generating more profit relative to its assets over time.

The consistent improvement in ROA suggests that NewMarket Corp. has been effectively utilizing its assets to generate earnings. This could be attributed to factors such as efficient asset management, cost control measures, or successful revenue generation strategies. The increasing trend in ROA reflects positively on the company's operational efficiency and overall financial performance.

The significant rise in ROA from 11.58% in Q4 2022 to 16.78% in Q4 2023 demonstrates a notable enhancement in the company's profitability relative to its total assets. Overall, the upward trajectory of NewMarket Corp.'s ROA indicates a favorable outlook for the company in terms of its ability to generate returns from its asset base.