Enhabit Inc. (EHAB)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Operating income (ttm)	US$ in thousands	-47,600	-144,500	-134,400	-32,600
Total assets	US$ in thousands	1,433,600	1,450,900	1,426,200	1,527,000	1,526,800	1,622,900	1,621,400
Operating ROA		-3.32%	-9.96%	-9.42%	-2.13%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-47,600K ÷ $1,433,600K
= -3.32%

Based on the data provided, Enhabit Inc.'s operating return on assets (operating ROA) has shown a declining trend over the past four quarters. The operating ROA was -3.32% as of December 31, 2023. This was preceded by -9.96% as of September 30, 2023, -9.42% as of June 30, 2023, and -2.13% as of March 31, 2023.

The negative values indicate that the company's operating income generated from its assets is not sufficient to cover the operating costs associated with those assets. This declining trend in operating ROA suggests that Enhabit Inc. may be experiencing challenges in generating profits from its core operations relative to the size of its asset base. Further investigation into the company's operational efficiency, profitability, and asset utilization may be warranted to determine the underlying causes of the decreasing operating ROA.