Terex Corporation (TEX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 335,000 | 518,000 | 300,000 | 220,900 | -10,600 |
| Total assets | US$ in thousands | 5,730,000 | 3,615,000 | 3,118,100 | 2,863,500 | 3,031,800 |
| ROA | 5.85% | 14.33% | 9.62% | 7.71% | -0.35% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $335,000K ÷ $5,730,000K
= 5.85%
Based on the data provided, Terex Corporation's return on assets (ROA) has demonstrated a fluctuating trend over the years. It started at a negative value of -0.35% as of December 31, 2020, indicating that the company was initially not efficiently utilizing its assets to generate profit.
However, there was a significant improvement in the following years, with ROA increasing to 7.71% as of December 31, 2021, and further rising to 9.62% as of December 31, 2022. This suggests that Terex Corporation managed to enhance its asset utilization and profitability during this period.
By December 31, 2023, the ROA surged to 14.33%, signaling a substantial boost in the company's ability to generate profits from its assets. This could indicate successful strategic decisions or operational efficiencies implemented by the company.
Subsequently, the ROA decreased to 5.85% by December 31, 2024, although it still remained positive. This dip might be due to various factors such as changes in market conditions, operational challenges, or investment decisions.
Overall, the trend in Terex Corporation's ROA reflects a mixed performance, with notable improvements in asset utilization and profitability in certain years, but also some fluctuations that could warrant further investigation into the company's operational and financial strategies.