Adapthealth Corp (AHCO)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-678,895	69,316	156,175	-161,632	-21,341
Total assets	US$ in thousands	4,508,650	5,219,590	5,250,480	1,813,470	546,538
ROA		-15.06%	1.33%	2.97%	-8.91%	-3.90%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-678,895K ÷ $4,508,650K
= -15.06%

The return on assets (ROA) of AdaptHealth Corp has shown significant fluctuations over the past five years. In 2023, the ROA dropped sharply to -15.06%, indicating that the company generated a negative return on its assets during that year. This decline from the positive ROA of 1.22% in the previous year (2022) is concerning as it signifies a deterioration in asset productivity.

In 2021, AdaptHealth Corp's ROA stood at 2.70%, reflecting a relatively healthy return on assets compared to the surrounding years. However, the company experienced a significant decline in ROA in 2020, dropping to -8.91%, which suggests a period of decreased asset efficiency and profitability.

Moreover, in 2019, the ROA was also negative at -2.75%, indicating another instance of the company failing to generate a positive return on its assets.

Overall, the inconsistent performance of AdaptHealth Corp in terms of ROA raises questions about the company's ability to effectively utilize its assets to generate profits. Investors and stakeholders may need to closely monitor the company's asset management strategies and operational efficiency to ensure sustained profitability in the future.