Verra Mobility Corp (VRRM)

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	31,448	101,126	96,702	81,587	57,015	82,211	76,479	87,012	92,475	83,323	86,053	60,404	41,449	20,967	347	-19,033	-3,445	7,151	18,217	37,196
Total assets	US$ in thousands	1,614,490	1,850,580	1,773,000	1,769,860	1,789,980	1,756,080	1,906,160	1,710,890	1,756,270	1,718,330	1,779,860	1,824,480	1,837,060	1,481,920	1,559,190	1,497,210	1,367,320	1,371,970	1,355,120	1,374,130
ROA		1.95%	5.46%	5.45%	4.61%	3.19%	4.68%	4.01%	5.09%	5.27%	4.85%	4.83%	3.31%	2.26%	1.41%	0.02%	-1.27%	-0.25%	0.52%	1.34%	2.71%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $31,448K ÷ $1,614,490K
= 1.95%

The return on assets (ROA) of Verra Mobility Corp has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ROA started at 2.71% in March 2020, declining to -1.27% by March 2021, indicating a significant decrease in profitability relative to the assets employed.

However, from March 2021 onwards, the ROA gradually improved, reaching 5.45% by June 30, 2024. This upward trend suggests that Verra Mobility Corp became more efficient in generating earnings from its assets over time.

Although there was a noticeable decline to 1.95% by December 31, 2024, it is important to note that the overall trend showed an improvement in the company's ability to generate profits in relation to its assets compared to the initial period.

Analyzing the ROA helps assess management's effectiveness in utilizing assets to generate earnings and indicates the company's operational efficiency and profitability performance during the period under review.