Community Healthcare Trust Inc (CHCT)
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 | -42,030 | -13,309 | -9,607 | -6,222 | -11,274 |
| Total assets | US$ in thousands | 945,412 | 876,425 | 754,233 | 668,402 | 562,531 |
| Operating ROA | -4.45% | -1.52% | -1.27% | -0.93% | -2.00% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-42,030K ÷ $945,412K
= -4.45%
Community Healthcare Trust Inc's operating return on assets (operating ROA) has exhibited a declining trend over the past five years. The company's operating ROA decreased from 3.32% in 2019 to 2.66% in 2023. This indicates that the company's ability to generate operating profits from its assets has decreased over the period.
A lower operating ROA can suggest inefficiencies in the company's operations or a decrease in profitability relative to its asset base. In this case, the declining trend may raise concerns about the company's operational performance and asset utilization efficiency.
Investors and stakeholders may further scrutinize the reasons behind this declining trend in operating ROA to assess the company's operational effectiveness, competitiveness, and overall financial health. Additional analysis of the company's financial and operational data, as well as comparisons with industry peers, could provide valuable insights into the factors influencing the operating ROA of Community Healthcare Trust Inc.
Peer comparison
Dec 31, 2023