Simpson Manufacturing Company Inc (SSD)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 429,975 | 475,149 | 459,067 | 367,793 | 252,363 |
| Total assets | US$ in thousands | 2,736,170 | 2,704,720 | 2,503,970 | 1,484,120 | 1,232,570 |
| Operating ROA | 15.71% | 17.57% | 18.33% | 24.78% | 20.47% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $429,975K ÷ $2,736,170K
= 15.71%
Simpson Manufacturing Company Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The operating ROA increased from 20.47% as of December 31, 2020, to 24.78% as of December 31, 2021, indicating improved efficiency in generating operating income relative to its assets in the initial years.
However, in the subsequent years, there was a decline in the operating ROA. By December 31, 2022, the operating ROA decreased to 18.33%, and further dropped to 17.57% by December 31, 2023. This could suggest potential challenges in controlling operating expenses or decreasing operating income during these periods.
As of December 31, 2024, the operating ROA stood at 15.71%, reflecting a continued decrease in the efficiency of utilizing assets to generate operating income.
Overall, Simpson Manufacturing Company Inc's operating ROA has experienced both growth and decline over the five-year period, indicating fluctuations in the company's operational efficiency and effectiveness in utilizing its assets to generate operating profits.
Peer comparison
Dec 31, 2024