Healthcare Services Group Inc (HCSG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -169,329 | -129,092 | -138,565 | -48,884 | -109,382 |
| Total assets | US$ in thousands | 790,652 | 720,836 | 777,529 | 785,031 | 722,592 |
| Operating ROA | -21.42% | -17.91% | -17.82% | -6.23% | -15.14% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-169,329K ÷ $790,652K
= -21.42%
Operating ROA measures the efficiency of Healthcare Services Group, Inc. in generating operating income relative to its total assets. The trend analysis of the data shows a decrease in operating ROA from 14.93% in 2020 to 6.07% in 2023, indicating a decline in the company's ability to generate operating income per dollar of assets over the years. However, it is worth noting that the operating ROA has fluctuated over the years, with a peak at 14.93% in 2020 and a low of 6.07% in 2023. Further investigation is recommended to understand the factors contributing to these fluctuations and to determine the company's operational efficiency and asset utilization in achieving its financial goals.