Willscot Mobile Mini Holdings Corp A (WSC)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 28,129 | 476,457 | 339,540 | 160,144 | 74,127 |
| Total assets | US$ in thousands | 6,034,910 | 6,137,920 | 5,827,650 | 5,773,600 | 5,572,200 |
| ROA | 0.47% | 7.76% | 5.83% | 2.77% | 1.33% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $28,129K ÷ $6,034,910K
= 0.47%
Analyzing the return on assets (ROA) of WillScot Mobile Mini Holdings Corp A over the specified period reveals a trend of progressive improvement from December 31, 2020, through December 31, 2023, followed by a significant decline in 2024. Specifically, the ROA increased from 1.33% at the end of 2020 to 2.77% in 2021, signifying increased efficiency in generating earnings from the company's assets. This upward trajectory continued into 2022, reaching 5.83%, and further strengthened in 2023, attaining 7.76%, indicating enhanced operational performance and potentially more effective asset utilization during these years.
However, the observed decline in 2024 to 0.47% suggests a notable deterioration in the company's ability to convert its assets into profits. This sharp decrease could imply several underlying issues, such as a reduction in net income, increased asset base without corresponding revenue growth, or changes in operational effectiveness. The significant drop after the sustained increase signals a potential adverse shift in the company's profitability dynamics or operational environment in 2024 that warrants further detailed investigation.
Overall, the trend demonstrates a period of continuous improvement in asset efficiency and profitability from 2020 through 2023, followed by an abrupt decline in 2024, highlighting the importance of examining underlying factors influencing the company's financial performance in that year.