GE HealthCare Technologies Inc. (GEHC)
Return on assets (ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,568,000 | 1,719,000 | |||
| Total assets | US$ in thousands | 32,454,000 | 32,382,000 | 32,311,000 | 32,637,000 | 27,539,000 |
| ROA | 4.83% | 5.31% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,568,000K ÷ $32,454,000K
= 4.83%
To analyze GE HealthCare Technologies Inc.'s Return on Assets (ROA) based on the provided data:
1. ROA is calculated as Net Income divided by Average Total Assets. However, since the data table does not include Net Income or Total Assets figures, we will analyze the trend of ROA over the past five quarters.
2. The ROA figures show a decreasing trend from 5.31% in September 2023 to 4.83% in December 2023. This indicates that GE HealthCare Technologies Inc. is generating lower profits relative to its assets compared to the previous quarter.
3. A declining ROA could be attributed to various factors such as decreased profitability, inefficient asset utilization, or an increase in total assets without a corresponding increase in net income.
4. It is important for the company to further investigate the reasons behind the decrease in ROA to identify any operational inefficiencies or financial challenges that may be affecting its overall profitability and asset utilization.
5. The management of GE HealthCare Technologies Inc. should focus on improving operational efficiency, optimizing asset utilization, and enhancing profitability to potentially increase ROA in future periods and create value for its stakeholders.
Peer comparison
Dec 31, 2023