GE HealthCare Technologies Inc. (GEHC)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,435,000 | 2,523,000 | |||
| Total assets | US$ in thousands | 32,454,000 | 32,382,000 | 32,311,000 | 32,637,000 | 27,539,000 |
| Operating ROA | 7.50% | 7.79% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,435,000K ÷ $32,454,000K
= 7.50%
GE HealthCare Technologies Inc. has shown a consistent trend in operating return on assets (ROA) over the past few quarters. The operating ROA for the most recent quarter, ending December 31, 2023, stands at 7.50%, slightly lower than the previous quarter at 7.79% for September 30, 2023. This indicates that the company is generating $7.50 in operating income for every $100 of assets it holds.
While a decrease in operating ROA from the previous quarter may raise concerns about the company's efficiency in generating profits from its assets, it is essential to note that GE HealthCare Technologies Inc. has maintained a relatively stable operating ROA above 7% throughout the year. This suggests that the company is effectively utilizing its assets to generate operating profits.
Further analysis of the factors contributing to the change in operating ROA between the quarters can provide insights into the company's operational performance and efficiency in utilizing its asset base. It is crucial for stakeholders to monitor this ratio in conjunction with other financial metrics to assess the overall financial health and performance of GE HealthCare Technologies Inc.
Peer comparison
Dec 31, 2023