Globus Medical (GMED)

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	165,991	133,142	227,951	171,953	111,433
Total assets	US$ in thousands	5,251,750	5,086,080	2,076,130	1,957,260	1,679,480
Operating ROA		3.16%	2.62%	10.98%	8.79%	6.63%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $165,991K ÷ $5,251,750K
= 3.16%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. Globus Medical's Operating ROA has shown fluctuations over the years.

In 2020, Globus Medical had an Operating ROA of 6.63%, indicating that the company generated approximately $0.066 in operating income for every dollar of assets. This ratio improved in 2021 to 8.79%, suggesting increased efficiency in generating operating income from its asset base.

By the end of 2022, Globus Medical's Operating ROA further increased to 10.98%, reflecting a more favorable performance in utilizing its assets to drive operating profitability. However, there was a significant drop in 2023, with an Operating ROA of 2.62%, indicating a decline in the company's ability to generate operating income relative to its asset base.

By the end of 2024, there was a slight improvement in Globus Medical's Operating ROA to 3.16%. While this represents a recovery from the previous year, the ratio is still lower compared to the levels seen in the earlier years.

Overall, Globus Medical's Operating ROA has shown variability, with performance fluctuations that suggest the company's efficiency in generating operating income from its assets has not been consistent. It would be important to further analyze the underlying factors contributing to these fluctuations to assess the company's operational effectiveness and asset utilization strategies.