Terex Corporation (TEX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 518,000 | 300,000 | 220,900 | -10,600 | 54,400 |
| Total assets | US$ in thousands | 3,615,500 | 3,118,100 | 2,863,500 | 3,031,800 | 3,195,600 |
| ROA | 14.33% | 9.62% | 7.71% | -0.35% | 1.70% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $518,000K ÷ $3,615,500K
= 14.33%
Terex Corp.'s return on assets (ROA) has shown positive performance over the past five years. The ROA increased from -0.35% in 2020 to 14.33% in 2023, indicating a significant improvement in the company's ability to generate profits from its assets. This upward trend suggests that Terex Corp. is becoming more efficient in utilizing its assets to generate earnings. The company's ROA exceeded 10% in 2022 and continued to rise in the following years, reflecting strong asset utilization and profitability. Overall, the increasing trend in ROA signals favorable financial performance and effective management of assets by Terex Corp.