Adapthealth Corp (AHCO)
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 | 263,732 | -598,401 | 190,411 | 225,605 | 71,346 |
| Total assets | US$ in thousands | 4,486,950 | 4,508,650 | 5,219,590 | 5,250,480 | 1,813,470 |
| Operating ROA | 5.88% | -13.27% | 3.65% | 4.30% | 3.93% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $263,732K ÷ $4,486,950K
= 5.88%
Operating ROA is a key financial ratio that measures a company's efficiency in generating operating profits relative to its total assets. Analyzing Adapthealth Corp's Operating ROA from December 31, 2020, to December 31, 2024, reveals fluctuations in the company's asset utilization and operating profitability.
- In December 31, 2020, Adapthealth Corp's Operating ROA was 3.93%, indicating that the company generated approximately $0.0393 in operating income for every $1 of assets.
- By December 31, 2021, the Operating ROA improved to 4.30%, suggesting enhanced efficiency in utilizing assets to generate operating profits.
- In December 31, 2022, the Operating ROA decreased to 3.65%, which might reflect a decline in operating profitability relative to the company's asset base.
- However, the performance significantly deteriorated by December 31, 2023, with an Operating ROA of -13.27%, signifying that the company experienced negative operating returns relative to its assets, potentially indicating operational challenges or inefficiencies.
- The trend reversed positively by December 31, 2024, with the Operating ROA reaching 5.88%, showing improved operating performance and asset utilization compared to the prior year.
Overall, the analysis of Adapthealth Corp's Operating ROA highlights fluctuations in operating efficiency and profitability over the period, indicating the importance of closely monitoring the company's performance and asset management strategies.
Peer comparison
Dec 31, 2024