Valmont Industries Inc (VMI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 348,259 | 150,849 | 433,249 | 195,630 | 140,693 |
| Total assets | US$ in thousands | 3,329,970 | 3,477,450 | 3,557,000 | 3,447,250 | 2,953,160 |
| ROA | 10.46% | 4.34% | 12.18% | 5.67% | 4.76% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $348,259K ÷ $3,329,970K
= 10.46%
The Return on Assets (ROA) measures a company's ability to generate profit from its assets. Looking at the ROA trend for Valmont Industries Inc, we can observe fluctuations over the years. In 2020, the ROA was 4.76%, indicating that the company generated $0.0476 in profit for every dollar of assets.
In 2021, the ROA improved to 5.67%, suggesting a slightly better performance in utilizing its assets to generate profit. The ROA then significantly increased to 12.18% in 2022, signaling a substantial improvement in efficiency and profitability.
However, in 2023, there was a decline in the ROA to 4.34%, which may raise concerns about the company's asset utilization and profitability. The ROA bounced back in 2024 to 10.46%, showing a strong recovery and improved performance in generating profit from its assets.
Overall, Valmont Industries Inc's ROA has shown variability over the years, indicating fluctuations in asset efficiency and profitability. It is essential for the company to sustain and improve ROA levels to ensure long-term profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2024