CorVel Corp (CRVL)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 115,471 | 114,019 | 113,874 | 107,705 | 103,459 | 104,560 | 100,025 | 101,483 | 101,135 | 93,802 | 90,076 | 85,016 | 74,345 | 69,317 | 67,614 | 68,921 | 76,378 | 78,299 | 79,597 | 79,743 |
| Total assets | US$ in thousands | 454,679 | 444,995 | 434,117 | 417,573 | 393,923 | 407,687 | 399,886 | 415,677 | 415,246 | 423,708 | 424,901 | 422,483 | 424,760 | 457,865 | 441,580 | 425,009 | 416,260 | 422,080 | 426,769 | 427,864 |
| Operating ROA | 25.40% | 25.62% | 26.23% | 25.79% | 26.26% | 25.65% | 25.01% | 24.41% | 24.36% | 22.14% | 21.20% | 20.12% | 17.50% | 15.14% | 15.31% | 16.22% | 18.35% | 18.55% | 18.65% | 18.64% |
March 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $115,471K ÷ $454,679K
= 25.40%
Operating return on assets (operating ROA) measures how efficiently a company generates operating income from its assets. CorVel Corp's operating ROA has shown a generally positive trend over the past few quarters, ranging from 15.14% in Dec 2020 to 26.23% in Sep 2023. This indicates that the company has been effectively utilizing its assets to generate operating profits.
The operating ROA peaked at 26.26% in Mar 2023, suggesting a high level of operational efficiency at that time. Subsequently, there was a slight decrease in the metric before increasing again to 25.40% in Mar 2024. This consistency in maintaining a high operating ROA reflects CorVel Corp's ability to generate sustainable operating income relative to its asset base.
Overall, the improving trend in CorVel Corp's operating ROA demonstrates the company's effectiveness in managing its assets to generate operating profits, which is a positive indicator for investors and stakeholders. It suggests that the company's operations are efficient and that it is maximizing returns from its investments in assets.