Valmont Industries Inc (VMI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 291,557 | 433,249 | 286,785 | 225,953 | 227,905 |
| Total assets | US$ in thousands | 3,477,450 | 3,557,000 | 3,447,250 | 2,953,160 | 2,807,220 |
| Operating ROA | 8.38% | 12.18% | 8.32% | 7.65% | 8.12% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $291,557K ÷ $3,477,450K
= 8.38%
Valmont Industries Inc's operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA was 8.38%, showing a decrease from 12.18% in 2022. This decrease indicates a potential decline in the company's operating efficiency and profitability in utilizing its assets to generate operating income.
Comparing the 2023 operating ROA to the figures in 2021 (8.32%), 2020 (7.65%), and 2019 (8.12%), it is higher than 2020 and 2019 but lower than 2021. This suggests that the company's performance in 2023 was somewhat mixed compared to the previous years, showcasing a modest improvement from 2020 and 2019, but a decline from 2022.
The variations in operating ROA over the years may reflect changing market conditions, operational challenges, strategic decisions, or changes in asset utilization efficiency within Valmont Industries Inc. Further analysis of the company's financial statements and operational performance may be necessary to fully understand the factors driving these fluctuations in operating ROA.
Peer comparison
Dec 31, 2023