Willscot Mobile Mini Holdings Corp A (WSC)
Operating return on assets (Operating ROA)
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 396,074 | 406,586 | 409,340 | 622,657 | 651,758 | 673,459 | 667,494 | 643,507 | 608,628 | 554,890 | 501,108 | 443,944 | 382,898 | 360,273 | 334,110 | 262,174 | 232,626 | 182,715 | 130,576 | 135,963 |
| Total assets | US$ in thousands | 5,961,680 | 6,034,910 | 6,037,220 | 6,048,770 | 6,180,330 | 6,137,920 | 6,075,480 | 5,718,500 | 5,609,750 | 5,827,650 | 5,810,260 | 5,978,810 | 5,857,770 | 5,773,600 | 5,644,180 | 5,559,710 | 5,538,880 | 5,572,200 | 5,624,850 | 3,501,540 |
| Operating ROA | 6.64% | 6.74% | 6.78% | 10.29% | 10.55% | 10.97% | 10.99% | 11.25% | 10.85% | 9.52% | 8.62% | 7.43% | 6.54% | 6.24% | 5.92% | 4.72% | 4.20% | 3.28% | 2.32% | 3.88% |
March 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $396,074K ÷ $5,961,680K
= 6.64%
The operating return on assets (ROA) of WillScot Mobile Mini Holdings Corp A demonstrates a generally upward trend from mid-2020 through the third quarter of 2023, with the metric escalating from 3.88% as of June 30, 2020, to a peak of approximately 11.25% on June 30, 2023. During this period, the company exhibited consistent operational improvements, reflected in the progressive increase in operating ROA, which reached notable milestones such as 4.72% in June 2021, 6.24% at the end of 2021, and 10.85% by the first quarter of 2023. This growth suggests enhanced efficiency in generating operating income relative to total assets, potentially driven by favorable market conditions, operational optimization, or strategic growth initiatives.
However, subsequent to this peak, a decline is observed: as of September 30, 2023, the operating ROA decreased marginally to 10.99%, and by December 31, 2023, it slightly further declined to 10.97%. The downward trend continued into 2024, with values descending to approximately 10.55% by March 2024 and further decreasing to 10.29% by June 2024. The decline in operating ROA during this period indicates a reduction in operational efficiency or profitability relative to the company's asset base.
Furthermore, a sharper decline is observed in the latter part of 2024 and early 2025, with the metric dropping to 6.78% on September 30, 2024, 6.74% on December 31, 2024, and reaching 6.64% by March 31, 2025. This significant decrease from previous levels suggests that the company's ability to generate operating income from its assets has weakened considerably in this period, potentially attributable to macroeconomic factors, sector-specific headwinds, or internal operational challenges.
Overall, the company's operating ROA displays an initial period of sustained growth, reflecting improved operational performance over time, followed by a noticeable decline starting in late 2023 through early 2025, indicating deteriorating efficiency or shifts in operational conditions.