Sterling Construction Company Inc (STRL)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 257,461 | 138,655 | 106,461 | 62,645 | 42,306 |
| Total assets | US$ in thousands | 2,016,770 | 1,777,180 | 1,441,620 | 1,234,770 | 952,694 |
| ROA | 12.77% | 7.80% | 7.38% | 5.07% | 4.44% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $257,461K ÷ $2,016,770K
= 12.77%
The return on assets (ROA) for Sterling Construction Company Inc. demonstrates a consistent upward trajectory over the analyzed period from December 31, 2020, through December 31, 2024. Starting at 4.44% in 2020, the ROA increased modestly in 2021 to 5.07%, indicating an initial improvement in asset efficiency and profitability relative to the company's total assets. The upward trend accelerates in 2022, with the ROA reaching 7.38%, reflecting a more pronounced enhancement in asset utilization and operational performance. This positive momentum continues into 2023, with the ROA marginally rising to 7.80%, suggesting sustained gains in asset productivity. The most significant growth occurs in 2024, where ROA jumps to 12.77%, more than doubling the figure from two years prior. This marked increase signals a substantial improvement in the company's ability to generate profit from its assets, which may be attributable to operational efficiencies, strategic growth initiatives, or other favorable factors influencing profitability. Overall, the trend indicates a strengthening of asset efficiency and profitability over the observed timeframe.
Peer comparison
Dec 31, 2024