Terex Corporation (TEX)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 335,200 | 464,100 | 495,100 | 513,800 | 517,900 | 483,200 | 446,000 | 360,700 | 300,000 | 266,600 | 232,900 | 232,700 | 220,900 | 179,800 | 137,500 | 54,400 | -10,600 | -3,800 | 11,800 | 96,100 |
| Total assets | US$ in thousands | 5,730,000 | 3,781,000 | 3,779,500 | 3,759,900 | 3,615,000 | 3,461,100 | 3,415,200 | 3,281,200 | 3,118,100 | 2,976,500 | 2,993,700 | 2,939,900 | 2,863,500 | 3,067,900 | 3,068,500 | 2,965,500 | 3,031,800 | 2,915,200 | 2,864,300 | 3,114,700 |
| ROA | 5.85% | 12.27% | 13.10% | 13.67% | 14.33% | 13.96% | 13.06% | 10.99% | 9.62% | 8.96% | 7.78% | 7.92% | 7.71% | 5.86% | 4.48% | 1.83% | -0.35% | -0.13% | 0.41% | 3.09% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $335,200K ÷ $5,730,000K
= 5.85%
Terex Corporation's return on assets (ROA) has shown significant fluctuations over the reported periods. The ROA started at 3.09% on March 31, 2020, which decreased to 0.41% by June 30, 2020, indicating a decline in asset efficiency during that period. The trend further deteriorated, with negative ROA figures in the subsequent quarters of September and December 2020, indicating that the company's assets were not generating profits during that time.
However, the ROA started to improve in the following quarters, showing a positive upturn by March 31, 2021, and continued to increase steadily through June 30, 2024. The highest recorded ROA was 14.33% on December 31, 2023, reflecting a strong performance in utilizing assets to generate profits. This positive trend reversed in the last quarter of 2024, with the ROA dropping to 5.85%.
Overall, the ROA trend indicates that Terex Corporation experienced both periods of inefficiency and periods of improved asset utilization and profitability during the reported timeframe. It is essential for the company to focus on maintaining a consistently high ROA to ensure efficient use of its assets and maximize profitability.