Adapthealth Corp (AHCO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -598,401 | 190,411 | 225,605 | 71,346 | 29,378 |
| Total assets | US$ in thousands | 4,508,650 | 5,219,590 | 5,250,480 | 1,813,470 | 546,538 |
| Operating ROA | -13.27% | 3.65% | 4.30% | 3.93% | 5.38% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-598,401K ÷ $4,508,650K
= -13.27%
Operating Return on Assets (Operating ROA) is a key profitability ratio that measures a company's ability to generate operating income from its assets. A higher Operating ROA indicates that the company is more efficient in generating earnings relative to its asset base.
Based on the data provided for AdaptHealth Corp from 2019 to 2023, we can observe fluctuations in the Operating ROA over the period. In 2019, the company had a relatively high Operating ROA of 5.44%, suggesting strong operational performance in generating earnings from its assets.
However, in the following years, the Operating ROA fluctuated. In 2020, it decreased to 3.15%, indicating a temporary decline in the company's efficiency in generating operating income from its assets. Subsequently, there was a slight improvement in 2021 to 4.10%, but it remained below the 2019 level.
Notably, in 2022 and 2023, AdaptHealth Corp managed to improve its Operating ROA to 3.65% and 5.15%, respectively. The increase in 2023 compared to the previous period suggests a positive trend in the company's operational efficiency and profitability in leveraging its asset base.
Overall, while AdaptHealth Corp experienced fluctuations in its Operating ROA over the years, the recent improvement in 2023 indicates a brighter outlook for the company's ability to generate operating income relative to its asset investment. It would be important for stakeholders to monitor future trends in Operating ROA to assess the company's ongoing operational performance and efficiency in utilizing its asset resources.
Peer comparison
Dec 31, 2023