Simpson Manufacturing Company Inc (SSD)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 322,224 | 353,987 | 333,995 | 266,447 | 187,000 |
| Total assets | US$ in thousands | 2,736,170 | 2,704,720 | 2,503,970 | 1,484,120 | 1,232,570 |
| ROA | 11.78% | 13.09% | 13.34% | 17.95% | 15.17% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $322,224K ÷ $2,736,170K
= 11.78%
Based on the provided data, Simpson Manufacturing Company Inc has shown a fluctuating trend in its Return on Assets (ROA) over the past five years.
- In 2020, the ROA was 15.17%, indicating that the company generated $0.1517 in profit for every dollar of assets it possessed.
- The ROA increased to 17.95% in 2021, demonstrating improved efficiency in utilizing its assets to generate profits.
- However, in 2022, there was a decrease to 13.34% followed by a further decline to 13.09% in 2023, indicating potential challenges in asset utilization or profitability.
- The ROA dropped to 11.78% in 2024, suggesting a continued decline in the company's ability to generate profits from its assets.
Overall, the ROA trend for Simpson Manufacturing Company Inc shows a mixed performance with both improvements and declines in asset profitability over the past five years. It is essential for the company to closely monitor and manage its asset utilization and profitability to ensure sustainable growth and performance in the future.
Peer comparison
Dec 31, 2024