Adapthealth Corp (AHCO)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 90,422 -678,895 69,316 156,175 -161,632
Total assets US$ in thousands 4,486,950 4,508,650 5,219,590 5,250,480 1,813,470
ROA 2.02% -15.06% 1.33% 2.97% -8.91%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $90,422K ÷ $4,486,950K
= 2.02%

Adapthealth Corp's return on assets (ROA) has shown significant fluctuations over the past five years, based on the provided data.

In December 31, 2020, the company's ROA was -8.91%, indicating that for that year, the company's net income was negative in relation to its total assets. This could suggest operating inefficiencies, high expenses, or other financial challenges.

The ROA improved to 2.97% by December 31, 2021, a positive sign that the company was able to generate a higher level of net income relative to its assets. This improvement could indicate better management of assets or increased profitability.

By December 31, 2022, the ROA decreased to 1.33%, which, while still positive, showed a slight decline in the company's ability to generate income from its assets compared to the previous year.

The following year, by December 31, 2023, the ROA dropped significantly to -15.06%, indicating a sharp decrease in the company's ability to generate income from its assets. This could signal a period of financial distress or operational challenges.

However, by December 31, 2024, the ROA recovered to 2.02%, showing a positive trend and possibly suggesting that the company has taken steps to improve its financial performance and efficiency in utilizing its assets.

Overall, Adapthealth Corp's ROA has been volatile, with fluctuations reflecting changes in the company's financial performance and operational effectiveness over the past five years. It would be important for stakeholders to continue monitoring the ROA to assess the company's ongoing financial health and management of assets.