Centene Corp (CNC)
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 | 3,175,000 | 2,930,000 | 3,636,000 | 3,263,000 | 3,082,000 |
| Total assets | US$ in thousands | 82,445,000 | 84,641,000 | 76,870,000 | 78,375,000 | 68,719,000 |
| Operating ROA | 3.85% | 3.46% | 4.73% | 4.16% | 4.48% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,175,000K ÷ $82,445,000K
= 3.85%
Based on the data provided, Centene Corp's operating return on assets (Operating ROA) has fluctuated over the past five years. The Operating ROA was 4.48% as of December 31, 2020, and decreased to 4.16% by December 31, 2021. However, it then increased to 4.73% by December 31, 2022. Subsequently, there was a decline in Operating ROA to 3.46% by December 31, 2023, followed by a slight improvement to 3.85% by December 31, 2024.
These fluctuations in Centene Corp's Operating ROA indicate varying levels of profitability generated from its operating activities relative to its total assets over the years. A higher Operating ROA suggests that the company is generating more income for each dollar of assets employed in its operations, indicating operational efficiency and effectiveness in utilizing its assets. Conversely, a lower Operating ROA may signal challenges in generating sufficient earnings from its asset base.
It is essential for Centene Corp to carefully monitor its Operating ROA performance trends and analyze the factors contributing to the fluctuations to ensure sustainable profitability and efficient asset utilization in the future.
Peer comparison
Dec 31, 2024