Geo Group Inc (GEO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 278,747 | 352,389 | 383,102 | 288,083 | 222,574 |
| Total assets | US$ in thousands | 3,632,080 | 3,696,410 | 3,760,380 | 4,537,410 | 4,460,130 |
| Operating ROA | 7.67% | 9.53% | 10.19% | 6.35% | 4.99% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $278,747K ÷ $3,632,080K
= 7.67%
Geo Group Inc's operating return on assets (ROA) has shown a fluctuating trend over the past five years. The operating ROA has improved from 4.99% as of December 31, 2020, to 6.35% as of December 31, 2021. This indicates an initial increase in the company's ability to generate operating profits relative to its assets.
Subsequently, the operating ROA saw a significant jump to 10.19% by December 31, 2022, suggesting a strong performance in utilizing its assets efficiently to generate operational returns. However, by December 31, 2023, the operating ROA declined slightly to 9.53%. This could be due to various factors such as changes in operational efficiency or asset management strategies.
In the most recent period as of December 31, 2024, the operating ROA decreased further to 7.67%. This decline may warrant further investigation into the company's operational performance and asset utilization efficiency during that period.
Overall, Geo Group Inc's operating ROA has demonstrated variability over the analyzed period, indicating fluctuations in the company's ability to generate operating profits relative to its asset base. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational efficiency and performance.
Peer comparison
Dec 31, 2024