Community Healthcare Trust Inc (CHCT)
Return on assets (ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 7,714 | 8,385 | 10,566 | 9,573 | 22,019 | 22,894 | 22,575 | 22,701 | 22,492 | 21,619 | 21,476 | 20,292 | 19,077 | 16,050 | 13,486 | 11,026 | 8,376 | 4,278 | 3,630 | 3,981 |
| Total assets | US$ in thousands | 945,412 | 955,126 | 900,466 | 886,294 | 876,425 | 811,929 | 786,034 | 761,230 | 754,233 | 747,592 | 745,467 | 735,311 | 668,402 | 615,672 | 612,304 | 596,754 | 562,531 | 533,072 | 490,500 | 456,730 |
| ROA | 0.82% | 0.88% | 1.17% | 1.08% | 2.51% | 2.82% | 2.87% | 2.98% | 2.98% | 2.89% | 2.88% | 2.76% | 2.85% | 2.61% | 2.20% | 1.85% | 1.49% | 0.80% | 0.74% | 0.87% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $7,714K ÷ $945,412K
= 0.82%
Community Healthcare Trust Inc's return on assets (ROA) has exhibited a declining trend over the past eight quarters. In Q4 2022, the ROA was notably high at 2.19%, but it has decreased steadily since then. The ROA in the most recent quarter, Q4 2023, stands at 0.54%, reflecting a significant decline compared to the levels seen in the earlier quarters.
This downward trend in ROA indicates that the company's ability to generate profits from its assets has weakened over time. It suggests that either the company's profitability has decreased relative to its asset base or that the asset base has expanded faster than profitability. The declining ROA may raise concerns regarding the efficiency of asset utilization and the overall profitability of the company.
Further analysis, considering the company's financial and operational strategies, as well as industry comparisons, would be necessary to determine the root causes of the declining ROA and to evaluate the company's overall financial health.
Peer comparison
Dec 31, 2023