Valmont Industries Inc (VMI)
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 | 524,584 | 291,557 | 433,249 | 286,785 | 225,953 |
| Total assets | US$ in thousands | 3,329,970 | 3,477,450 | 3,557,000 | 3,447,250 | 2,953,160 |
| Operating ROA | 15.75% | 8.38% | 12.18% | 8.32% | 7.65% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $524,584K ÷ $3,329,970K
= 15.75%
Valmont Industries Inc's operating return on assets (operating ROA) has shown fluctuations over the years based on the provided data. The operating ROA was 7.65% as of December 31, 2020, increased to 8.32% by December 31, 2021, and significantly improved to 12.18% by December 31, 2022. However, there was a slight decrease to 8.38% by December 31, 2023, before a notable jump to 15.75% by December 31, 2024.
The upward trend in operating ROA from 2020 to 2022 indicates an improvement in the company's operating efficiency in generating profits from its assets. The dip in 2023 could be a result of various factors such as changes in operational performance, asset utilization, or profitability. The substantial increase to 15.75% in 2024 suggests a potentially favorable financial performance and enhanced asset management during that period.
Overall, fluctuations in Valmont Industries Inc's operating ROA highlight the company's ability to effectively utilize its assets to generate operating profits. Analyses of trends in operating ROA can provide insights into the company's operational efficiency and effectiveness in utilizing its assets to create value.
Peer comparison
Dec 31, 2024