Artivion Inc (AORT)

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	5,742	6,201	8,117	2,441	17,042
Total assets	US$ in thousands	792,397	762,798	793,052	789,404	605,654
Operating ROA		0.72%	0.81%	1.02%	0.31%	2.81%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $5,742K ÷ $792,397K
= 0.72%

Operating Return on Assets (Operating ROA) is a key financial ratio that indicates how efficiently a company is generating profits from its operating activities relative to its total assets. A negative operating ROA implies that the company is not effectively utilizing its assets to generate operating income.

Analyzing Artivion Inc's Operating ROA over the past 5 years, we observe fluctuations in the ratio. In 2019, the company had a relatively high Operating ROA of 2.81%, indicating that for every dollar of assets, Artivion Inc generated a profit of $0.0281 from its core operations. However, this declined in the following years, dropping to 0.31% in 2020, turning negative in 2021 and 2023, and showing a slight improvement in 2022 at 0.81%.

The negative Operating ROA in 2021, 2023, and the historic low in 2020 reflect challenges in generating profits from operations in relation to its assets during those periods. These negative figures indicate that Artivion Inc is not effectively utilizing its assets to generate positive operating income, possibly due to high operating expenses, declining revenues, or inefficient asset management.

Overall, based on the trend observed in Artivion Inc's Operating ROA, the company may need to review its operating efficiency and asset utilization strategies to improve profitability and operational performance in the future.