Valmont Industries Inc (VMI)

Operating return on assets (Operating 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
Operating income (ttm) US$ in thousands 524,584 468,144 318,219 304,644 291,557 337,725 471,887 456,873 433,249 374,287 340,510 304,416 286,785 290,170 275,454 236,269 225,953 222,579 222,164 240,198
Total assets US$ in thousands 3,329,970 3,496,830 3,457,200 3,465,380 3,477,450 3,486,180 3,615,840 3,604,490 3,557,000 3,621,730 3,674,750 3,581,480 3,447,250 3,411,260 3,404,140 3,008,080 2,953,160 2,923,910 2,831,840 2,757,580
Operating ROA 15.75% 13.39% 9.20% 8.79% 8.38% 9.69% 13.05% 12.68% 12.18% 10.33% 9.27% 8.50% 8.32% 8.51% 8.09% 7.85% 7.65% 7.61% 7.85% 8.71%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $524,584K ÷ $3,329,970K
= 15.75%

The operating return on assets (operating ROA) for Valmont Industries Inc has shown variability over the analyzed period.

From March 31, 2020, to December 31, 2020, the operating ROA fluctuated slightly around the 7-8% range, indicating moderate operational efficiency in generating profits from its assets.

In the following quarters of 2021 and 2022, the operating ROA experienced some improvement, reaching the highest level of 13.05% by June 30, 2023, indicating an enhanced ability to generate profits from its operational assets during this period.

The operating ROA saw a significant decline by September 30, 2023, and December 31, 2023, dropping to 9.69% and 8.38% respectively, suggesting a decline in profitability relative to the asset base.

However, this downward trend was reversed in the subsequent periods from March 31, 2024, to December 31, 2024, where the operating ROA showed a remarkable increase, reaching its peak of 15.75% by December 31, 2024. This sharp rise indicates a substantial improvement in operational efficiency and profitability from the assets in the latter part of the analyzed period.

Overall, Valmont Industries Inc's operating ROA demonstrates fluctuations but generally showcases a positive trend with periodic improvements in efficiently utilizing its assets to generate operating profits.


Peer comparison

Dec 31, 2024

Company name
Symbol
Operating ROA
Valmont Industries Inc
VMI
15.75%
Arcosa Inc
ACA
6.07%
Proto Labs Inc
PRLB
3.65%