Willscot Mobile Mini Holdings Corp A (WSC)
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 | 263,915 | 673,459 | 511,482 | 360,273 | 257,816 |
| Total assets | US$ in thousands | 6,034,910 | 6,137,920 | 5,827,650 | 5,773,600 | 5,572,200 |
| Operating ROA | 4.37% | 10.97% | 8.78% | 6.24% | 4.63% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $263,915K ÷ $6,034,910K
= 4.37%
The operating return on assets (ROA) for Willscot Mobile Mini Holdings Corp A demonstrates a notable upward trend from December 31, 2020, through December 31, 2023. Specifically, the operating ROA increased from 4.63% in 2020 to 6.24% in 2021, reflecting an improvement in the company's efficiency in generating operating profits relative to its asset base. This upward trajectory continued into 2022, reaching 8.78%, indicating further enhancement in operational performance.
By the end of 2023, the operating ROA peaked at 10.97%, suggesting significant operational efficiency gains and potentially improved asset utilization. However, this positive momentum appears to have reversed in 2024, where the operating ROA declined sharply to 4.37%. This decline could indicate a deterioration in operational efficiency or increased asset base without a proportional increase in operating profits.
Overall, the trend from 2020 to 2023 reflects a period of consistent improvement in asset efficiency, culminating in a peak in late 2023. The subsequent decrease in 2024 warrants further investigation to understand underlying factors impacting operational profitability relative to assets.