Amphastar P (AMPH)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Operating income (ttm) US$ in thousands 205,419 214,255 229,885 211,564 196,987 180,839 131,389 119,316 107,497 93,917 95,458 81,195 69,887 48,514 27,262 13,780 10,954 7,831 6,718 10,613
Total assets US$ in thousands 1,577,470 1,545,180 1,491,520 1,574,320 1,512,910 1,544,630 1,378,270 773,656 741,987 726,695 723,719 716,238 671,529 651,677 665,745 645,738 631,236 613,718 600,058 572,831
Operating ROA 13.02% 13.87% 15.41% 13.44% 13.02% 11.71% 9.53% 15.42% 14.49% 12.92% 13.19% 11.34% 10.41% 7.44% 4.09% 2.13% 1.74% 1.28% 1.12% 1.85%

December 31, 2024 calculation

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

Operating Return on Assets (Operating ROA) is a financial ratio that measures a company's operational efficiency in generating profits relative to its total assets. It indicates how well the company is utilizing its assets to generate operating income.

Analyzing the Operating ROA trend of Amphastar P from March 2020 to December 2024, we observe fluctuations in the ratio over the period. The ratio started at 1.85% in March 2020, indicating that for every dollar of assets, the company generated 1.85 cents of operating income.

The ratio experienced some variability in the subsequent quarters, with values ranging from 1.12% to 2.13% up to March 2021. Notably, there was a significant increase in the Operating ROA in the following quarters, reaching a peak of 15.41% in June 2024. This suggests that the company significantly improved its operational efficiency and profitability in utilizing its assets during that period.

While there were fluctuations in the ratio from June 2024 to December 2024, the Operating ROA remained relatively high, consistently above 13%. This trend indicates that Amphastar P has been effectively managing its assets to generate operating income, reflecting a positive performance in terms of operational efficiency.

Overall, the increasing trend in the Operating ROA from 2020 to 2024 signifies an improvement in the company's ability to generate profits from its assets, indicating potential operational excellence and effective asset utilization strategies during the period under review.