Addus HomeCare Corporation (ADUS)
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 | 102,691 | 90,956 | 68,737 | 65,936 | 44,507 |
| Total assets | US$ in thousands | 1,412,630 | 1,024,430 | 937,994 | 947,585 | 892,582 |
| Operating ROA | 7.27% | 8.88% | 7.33% | 6.96% | 4.99% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $102,691K ÷ $1,412,630K
= 7.27%
The operating return on assets (operating ROA) for Addus HomeCare Corporation has shown a generally positive trend over the last five years. Starting at 4.99% on December 31, 2020, the operating ROA increased to 6.96% by December 31, 2021. Continuing this growth trajectory, the operating ROA further improved to 7.33% by December 31, 2022, and then significantly rose to 8.88% by December 31, 2023, representing a notable increase in profitability. However, by December 31, 2024, there was a slight dip in the operating ROA to 7.27%.
The overall trend indicates that Addus HomeCare Corporation has been able to generate more operating income relative to its assets over the years, reflecting an improvement in operational efficiency and effectiveness in utilizing its assets. This could be a positive sign of the company's ability to generate profits from its core business activities. However, the slight decline in 2024 suggests a potential need for further evaluation to understand the factors influencing this change in operating ROA. Further analysis of the company's operational and financial performance may be necessary to assess the sustainability of this trend and identify any areas for improvement.
Peer comparison
Dec 31, 2024