Community Healthcare Trust Inc (CHCT)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,714 | 22,019 | 22,492 | 19,077 | 8,376 |
| Total assets | US$ in thousands | 945,412 | 876,425 | 754,233 | 668,402 | 562,531 |
| ROA | 0.82% | 2.51% | 2.98% | 2.85% | 1.49% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $7,714K ÷ $945,412K
= 0.82%
Community Healthcare Trust Inc's return on assets (ROA) has shown fluctuating trends over the past five years. In 2023, the ROA decreased to 0.54% from 2.19% in 2022. This decline in ROA suggests a lower efficiency in generating profits from its assets compared to the previous year.
Comparing the ROA in 2023 to the figures from earlier years, it is evident that the company's performance in utilizing its assets has been variable. In 2021, the ROA peaked at 2.68%, indicating a high level of asset efficiency. However, the ROA then dropped slightly to 2.58% in 2020 before declining further to 1.24% in 2019.
The declining trend in ROA over the years could indicate challenges in maintaining profitability relative to asset deployment. Investors and stakeholders may need to assess the drivers behind this decreasing trend in ROA to determine the company's ability to generate returns from its asset base effectively.
Peer comparison
Dec 31, 2023