Amphastar P (AMPH)

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	196,987	107,497	69,887	10,954	-39
Total assets	US$ in thousands	1,512,910	741,987	671,529	631,236	586,971
Operating ROA		13.02%	14.49%	10.41%	1.74%	-0.01%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $196,987K ÷ $1,512,910K
= 13.02%

Operating return on assets (operating ROA) is a key financial ratio that indicates the efficiency of a company in generating profits from its assets used in its operations. The trend of operating ROA for Amphastar Pharmaceuticals Inc over the past five years shows a fluctuating pattern:

- In 2023, the operating ROA was 13.02%, a decrease from the previous year's level of 14.49%. This decline may indicate a slight decrease in the company's efficiency in generating profits from its assets compared to the prior year.
- In 2022, the operating ROA was relatively high at 14.49%, indicating a strong ability to generate profits from the assets employed in its operations compared to the preceding year.
- In 2021, the operating ROA was 10.41%, showing an improvement from the prior year's level of 1.74%. This significant increase suggests enhanced efficiency in utilizing assets to generate profits.
- In 2020, the operating ROA was 1.74%, reflecting a substantial improvement from the slightly negative figure of -0.01% in 2019. This shift indicates a turnaround in the company's ability to generate profits from its assets.

Overall, the fluctuating trend in Amphastar Pharmaceuticals Inc's operating ROA over the period indicates varying levels of efficiency in asset utilization and profitability. However, the company has shown improvements in recent years, indicating a positive trajectory in generating profits from its operational assets.