Collegium Pharmaceutical Inc (COLL)
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 | 166,961 | 33,319 | 17,628 | 56,232 | -23,748 |
| Total assets | US$ in thousands | 1,143,310 | 1,174,130 | 692,077 | 643,841 | 306,302 |
| Operating ROA | 14.60% | 2.84% | 2.55% | 8.73% | -7.75% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $166,961K ÷ $1,143,310K
= 14.60%
Operating Return on Assets (ROA) is a critical indicator of Collegium Pharmaceutical Inc's efficiency in generating operating profits relative to its total assets.
The trend analysis of Collegium Pharmaceutical Inc's Operating ROA over the past five years reveals significant fluctuations. In 2019, the company reported a negative Operating ROA of -7.75%, indicating that the company was not efficiently utilizing its assets to generate operating profits, which could be a cause for concern.
However, in the subsequent years, Collegium Pharmaceutical Inc showed a positive turnaround in its Operating ROA performance. The Operating ROA improved to 8.73% in 2020, further increasing to 3.21% in 2021 and 2.84% in 2022. This upward trend suggests that the company made effective operational improvements and enhanced its asset utilization efficiency during these periods.
The most recent data for 2023 shows a notable improvement in Collegium Pharmaceutical Inc's Operating ROA to 14.60%. This indicates that the company significantly increased its ability to generate operating profits from its assets in the most recent fiscal year, reflecting potentially improved operational efficiency and profitability.
Overall, Collegium Pharmaceutical Inc's Operating ROA has shown a fluctuating trend over the past five years, with a significant improvement in 2023. This positive performance is a favorable indication of the company's operational effectiveness and financial health, showcasing potential growth and value creation for its shareholders and stakeholders. However, continued monitoring of Operating ROA trends will be crucial to assess the company's ongoing operational efficiency and asset utilization.
Peer comparison
Dec 31, 2023