Verra Mobility Corp (VRRM)
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 | 136,022 | 188,814 | 164,705 | 111,866 | 37,816 |
| Total assets | US$ in thousands | 1,614,490 | 1,789,980 | 1,756,270 | 1,837,060 | 1,367,320 |
| Operating ROA | 8.43% | 10.55% | 9.38% | 6.09% | 2.77% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $136,022K ÷ $1,614,490K
= 8.43%
The operating return on assets (Operating ROA) for Verra Mobility Corp has shown a positive trend over the years, indicating improved efficiency in generating profits from its assets. The Operating ROA increased from 2.77% as of December 31, 2020, to 8.43% as of December 31, 2024. This signifies that the company has been able to enhance its operational performance and capitalize more effectively on its asset base to generate profits.
The significant growth in Operating ROA from 2020 to 2024 reflects Verra Mobility Corp's ability to optimize its asset utilization and operational efficiency. The peak Operating ROA of 10.55% as of December 31, 2023, indicates a particularly strong performance in that year. However, there was a slight dip to 8.43% by the end of 2024, which may warrant further examination to identify potential factors influencing this decline.
Overall, the positive trajectory of Verra Mobility Corp's Operating ROA signals a positive operational trend, showcasing the company's ability to generate higher returns relative to its asset base over the years. This trend is generally favorable and indicates effective management of assets to drive profitability.
Peer comparison
Dec 31, 2024