Amphastar P (AMPH)

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	205,419	196,987	107,497	69,887	10,954
Total assets	US$ in thousands	1,577,470	1,512,910	741,987	671,529	631,236
Operating ROA		13.02%	13.02%	14.49%	10.41%	1.74%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $205,419K ÷ $1,577,470K
= 13.02%

Based on the provided data for Amphastar P's Operating Return on Assets (Operating ROA) over the five-year period from December 31, 2020, to December 31, 2024, the company's performance in utilizing its assets to generate operating income has shown significant improvements.

The Operating ROA has demonstrated an upward trend, starting at 1.74% in December 2020 and increasing to 10.41% in December 2021. This substantial growth continued as the Operating ROA further rose to 14.49% by December 2022. Although there was stability in performance with a consistent Operating ROA of 13.02% for both December 2023 and December 2024, it is worth noting that this level indicates efficient utilization of assets to generate operating profits.

Overall, the increasing trend in the Operating ROA signifies that Amphastar P has been effectively managing its assets to improve operating profitability, demonstrating operational efficiency and potentially capturing more value from its asset base over the years. Investors and stakeholders may view this trend positively as it indicates the company's ability to generate higher operating returns relative to its asset base.