Valmont Industries Inc (VMI)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 348,259 | 306,567 | 174,471 | 164,131 | 150,849 | 155,220 | 276,360 | 263,092 | 250,863 | 237,387 | 216,925 | 202,927 | 195,630 | 344,167 | 331,859 | 292,356 | 280,271 | 257,658 | 258,460 | 277,250 |
| 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 |
| ROA | 10.46% | 8.77% | 5.05% | 4.74% | 4.34% | 4.45% | 7.64% | 7.30% | 7.05% | 6.55% | 5.90% | 5.67% | 5.67% | 10.09% | 9.75% | 9.72% | 9.49% | 8.81% | 9.13% | 10.05% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $348,259K ÷ $3,329,970K
= 10.46%
The return on assets (ROA) of Valmont Industries Inc has shown fluctuation over the past few years. The ROA was relatively stable in the range of 8% to 10% from March 2020 to March 2021, indicating efficient utilization of assets to generate profits. However, from December 2021 to June 2022, the ROA dropped significantly to around 5%, which may suggest a decrease in profitability relative to the assets employed.
Subsequently, there was a gradual improvement in ROA from September 2022 to December 2024, reaching a peak of 10.46% by the end of December 2024. This upward trend indicates better profitability in relation to the company's assets during this period.
The dip in ROA in March 2023 and September 2023 to levels around 4.4% could raise concerns regarding the company's ability to generate returns from its assets efficiently during those specific quarters.
Overall, the fluctuation in Valmont Industries Inc's ROA over the analyzed period highlights the importance of continuous monitoring of asset utilization and profitability to ensure sustainable performance.
Peer comparison
Dec 31, 2024