The Ensign Group Inc (ENSG)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 209,399 | 224,681 | 194,652 | 170,478 | 110,534 |
| Total assets | US$ in thousands | 4,177,540 | 3,452,020 | 2,850,620 | 2,545,580 | 2,361,910 |
| ROA | 5.01% | 6.51% | 6.83% | 6.70% | 4.68% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $209,399K ÷ $4,177,540K
= 5.01%
Ensign Group Inc's return on assets (ROA) has shown a declining trend over the years, decreasing from 6.83% in 2021 to 5.01% in 2023. This indicates that the company's ability to generate profit from its assets has weakened over time. A higher ROA signifies better profitability in relation to the total assets employed, which was most prominent in 2021. However, the subsequent years saw a decrease in ROA, potentially indicating inefficiencies in asset utilization or declining profitability. Further analysis of the company's financial performance and operational efficiency would be warranted to understand the reasons behind this trend and to identify potential areas for improvement.
Peer comparison
Dec 31, 2023