Vulcan Materials Company (VMC)
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 | 1,364,500 | 1,427,400 | 951,400 | 1,010,800 | 895,731 |
| Total assets | US$ in thousands | 17,104,800 | 14,545,700 | 14,234,600 | 13,682,600 | 11,686,900 |
| Operating ROA | 7.98% | 9.81% | 6.68% | 7.39% | 7.66% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,364,500K ÷ $17,104,800K
= 7.98%
Operating Return on Assets (Operating ROA) is a key financial metric that measures a company's ability to generate profit from its assets used in its core operations.
Analyzing Vulcan Materials Company's Operating ROA from the provided data, we can observe the following trends:
1. In December 31, 2020, Vulcan Materials Company had an Operating ROA of 7.66%. This indicates that for every dollar of assets employed in its operations, the company generated a return of 7.66 cents.
2. By December 31, 2021, the Operating ROA slightly decreased to 7.39%, showing a slight decline in the company's ability to generate profit from its assets.
3. In the following year, December 31, 2022, the Operating ROA further decreased to 6.68%. This decline may suggest challenges in efficiently utilizing assets to drive profitability during that period.
4. However, in December 31, 2023, there was a notable improvement in Operating ROA, with a significant increase to 9.81%. This surge indicates a strong performance in utilizing assets to generate profit, possibly through improved operational efficiency or revenue growth.
5. By December 31, 2024, the Operating ROA stood at 7.98%. Although lower than the peak in 2023, it shows resilience and a continued ability to generate decent returns from the company's asset base.
Overall, fluctuations in Vulcan Materials Company's Operating ROA over the years reflect varying levels of operational efficiency and profitability. Management should continue to monitor and enhance the company's asset utilization to sustain or improve its performance in generating returns from its operations.
Peer comparison
Dec 31, 2024