NewMarket Corporation (NEU)

Return on assets (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
Net income (ttm)	US$ in thousands	462,413	432,084	411,009	399,013	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
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
ROA		14.78%	13.65%	13.05%	12.64%	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%

December 31, 2024 calculation

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

ROA, or return on assets, measures a company's ability to generate profit from its assets. It is calculated by dividing the net income by the average total assets.

Analyzing the ROA trend of NewMarket Corporation from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's efficiency in generating profits from its assets.

The ROA started at a high of 14.36% on March 31, 2020, and fluctuated over the subsequent quarters, with some periods showing a decline, such as on March 31, 2021, when it dropped to 10.62%. However, there were also periods of improvement, like on December 31, 2022, when the ROA increased to 11.61%.

The ROA showed a significant improvement on September 30, 2023, reaching 17.42%, indicating that the company was more efficient in generating profits from its assets during that period. This peak was followed by a slight decrease in the following quarters.

Overall, the company's ROA fluctuated during the analyzed period, indicating varying levels of efficiency in utilizing its assets to generate profit. This metric is crucial for investors and analysts to assess the company's operational performance and efficiency in asset utilization.