Sterling Construction Company Inc (STRL)
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 | 264,622 | 205,795 | 159,870 | 107,011 | 92,615 |
| Total assets | US$ in thousands | 2,016,770 | 1,777,180 | 1,441,620 | 1,234,770 | 952,694 |
| Operating ROA | 13.12% | 11.58% | 11.09% | 8.67% | 9.72% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $264,622K ÷ $2,016,770K
= 13.12%
The operating return on assets (Operating ROA) for Sterling Construction Company Inc has exhibited a general upward trend over the analyzed period from December 31, 2020, through December 31, 2024. At the end of 2020, the Operating ROA stood at 9.72%, reflecting the company's efficiency in generating operating income relative to its total assets during that year. In 2021, a slight decline to 8.67% was observed, indicating a temporary reduction in operational efficiency or changes in asset utilization.
Subsequently, the metric demonstrated a positive trajectory, reaching 11.09% by the end of 2022, thereby surpassing the 2020 level and indicating an improvement in operational effectiveness. This upward movement continued into 2023, with the Operating ROA slightly increasing to 11.58%, and then again into 2024, where it reached 13.12%. The consistent increase across the last two years suggests an enhancement in the company's ability to generate operating income relative to its asset base.
Overall, the progression of the Operating ROA from 2020 to 2024 signifies that Sterling Construction Company Inc has improved its operational efficiency in utilizing its assets over this period. The rising trend indicates effective management strategies and potentially favorable market conditions contributing to higher profitability relative to assets employed in the business operations.
Peer comparison
Dec 31, 2024