The Ensign Group Inc (ENSG)
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 | 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 255,367 | 307,737 | 302,232 | 302,590 | 296,825 | 287,243 | 279,274 | 265,896 | 260,465 | 250,710 | 239,461 | 230,041 | 223,155 | 206,989 | 182,719 | 156,024 | 129,180 | 80,359 | 78,847 | 81,883 |
| Total assets | US$ in thousands | 4,177,540 | 4,081,980 | 3,952,360 | 3,862,240 | 3,452,020 | 3,265,270 | 3,124,670 | 3,044,560 | 2,850,620 | 2,813,380 | 2,648,550 | 2,512,500 | 2,545,580 | 2,464,990 | 2,488,160 | 2,388,010 | 2,361,910 | 2,359,550 | 2,321,520 | 2,218,360 |
| Operating ROA | 6.11% | 7.54% | 7.65% | 7.83% | 8.60% | 8.80% | 8.94% | 8.73% | 9.14% | 8.91% | 9.04% | 9.16% | 8.77% | 8.40% | 7.34% | 6.53% | 5.47% | 3.41% | 3.40% | 3.69% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $255,367K ÷ $4,177,540K
= 6.11%
Ensign Group Inc's operating return on assets (ROA) has exhibited a downward trend over the past eight quarters, declining from 8.60% in Q4 2022 to 6.11% in Q4 2023. This indicates a decreasing efficiency in generating operating income relative to its total assets. The company's operating ROA peaked at 8.94% in Q2 2022 but has since been on a gradual decline.
The average operating ROA for the last four quarters stands at 7.53%, showcasing a consistent drop compared to the preceding four quarters' average of 8.77%. This downward trajectory may signal challenges in effectively utilizing assets to generate operating profits. Ensign Group Inc may need to assess its operational efficiency, asset management strategies, and cost control measures to enhance its operating ROA in the future.
Overall, Ensign Group Inc's operating ROA performance indicates a need for strategic interventions to improve the company's ability to generate profit from its asset base.
Peer comparison
Dec 31, 2023