Catalyst Pharmaceuticals Inc (CPRX)

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	86,812	101,838	52,385	41,303	31,823
Total assets	US$ in thousands	470,114	375,630	237,788	192,354	112,376
Operating ROA		18.47%	27.11%	22.03%	21.47%	28.32%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $86,812K ÷ $470,114K
= 18.47%

Catalyst Pharmaceuticals Inc's operating return on assets (operating ROA) has displayed some fluctuation in recent years. The company's operating ROA was 18.47% as of December 31, 2023, showing a decline from the previous year's 27.11%. This decrease suggests that the company may be facing challenges in generating operating income from its assets efficiently.

Comparing the current operating ROA to those of the prior years, the trend indicates variability in the company's ability to generate operating profits relative to its asset base. While the operating ROA was higher in 2019 at 28.32%, it has since trended downward. This could signify changes in the company's operational efficiency, asset utilization, or profitability drivers.

It would be essential for stakeholders to further investigate the factors contributing to this decline in operating ROA to assess Catalyst Pharmaceuticals Inc's operational performance and financial health accurately. Monitoring the operating ROA over time can provide insights into the company's profitability and efficiency in utilizing its assets to generate operating income.