Biomarin Pharmaceutical Inc (BMRN)

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	484,214	185,774	149,562	-82,341	-43,440
Total assets	US$ in thousands	6,988,940	6,841,600	6,375,070	6,004,770	5,848,020
Operating ROA		6.93%	2.72%	2.35%	-1.37%	-0.74%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $484,214K ÷ $6,988,940K
= 6.93%

Biomarin Pharmaceutical Inc's operating return on assets (operating ROA) has shown significant fluctuations over the past five years.

As of December 31, 2020, the operating ROA stood at -0.74%, indicating that the company generated a negative return on its assets from its core operations. This could be a concerning sign as it suggests that the company's operating activities were not efficient in utilizing its assets to generate profits.

By December 31, 2021, the operating ROA further decreased to -1.37%, signaling a continued struggle in effectively generating returns from its assets. The negative trend in the operating ROA over these two years raises questions about the company's operational efficiency and profitability.

However, there was a significant turnaround by December 31, 2022, with the operating ROA improving to 2.35%. This improvement suggests that the company made operational changes or improvements that enhanced its ability to generate profits from its assets.

The positive trend continued in the following years, with the operating ROA reaching 2.72% by December 31, 2023, and significantly improving to 6.93% by December 31, 2024. These positive results indicate that Biomarin Pharmaceutical Inc's operating activities became more efficient in generating returns from its assets, possibly through cost management, revenue growth, or better asset utilization.

Overall, the fluctuation in Biomarin Pharmaceutical Inc's operating ROA over the five-year period highlights the company's efforts to enhance its operational efficiency and profitability, ultimately leading to improved returns from its asset base.