Healthcare Services Group Inc (HCSG)
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 | 53,271 | 62,358 | 53,496 | 31,048 | 90,962 |
| Total assets | US$ in thousands | 802,772 | 790,652 | 718,334 | 777,529 | 785,031 |
| Operating ROA | 6.64% | 7.89% | 7.45% | 3.99% | 11.59% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $53,271K ÷ $802,772K
= 6.64%
The operating return on assets (ROA) for Healthcare Services Group Inc has shown some fluctuations over the past five years. In December 2020, the operating ROA was high at 11.59%, indicating that the company generated $11.59 in operating income for every $100 of assets. However, there was a notable decrease in December 2021, with the operating ROA dropping to 3.99%.
Subsequently, there was an improvement in December 2022 with the operating ROA increasing to 7.45%, suggesting better operational efficiency in asset utilization. In the following year, December 2023, the operating ROA slightly increased to 7.89%, indicating continued progress in generating operating income from its assets.
Nevertheless, in December 2024, the operating ROA decreased to 6.64%, which may suggest challenges in maintaining previous levels of efficiency in utilizing assets to generate operating income.
Overall, despite fluctuations, Healthcare Services Group Inc has demonstrated varying levels of effectiveness in generating operating income relative to its assets over the past five years. Further analysis of the company's operations and financial performance may reveal insights into the factors influencing these changes in operating ROA.