Healthcare Services Group Inc (HCSG)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 49,121 | 80,691 | 56,528 | 68,693 | 66,732 | 32,469 | 36,476 | 42,908 | 44,371 | 31,740 | 44,934 | 40,437 | 53,769 | 83,859 | 105,038 | 116,376 | 117,208 | 111,595 | 102,151 | 102,111 |
| Total assets | US$ in thousands | 802,772 | 805,841 | 799,702 | 803,880 | 803,182 | 750,716 | 761,758 | 719,133 | 718,334 | 722,164 | 740,058 | 746,516 | 777,529 | 793,605 | 817,994 | 782,809 | 785,031 | 754,331 | 736,688 | 732,077 |
| Operating ROA | 6.12% | 10.01% | 7.07% | 8.55% | 8.31% | 4.33% | 4.79% | 5.97% | 6.18% | 4.40% | 6.07% | 5.42% | 6.92% | 10.57% | 12.84% | 14.87% | 14.93% | 14.79% | 13.87% | 13.95% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $49,121K ÷ $802,772K
= 6.12%
Healthcare Services Group Inc's operating return on assets (operating ROA) has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The trend indicates a general decline in operating ROA over the period.
The operating ROA started at a relatively high level of 13.95% as of March 31, 2020. It then fluctuated around this level, with slight variations, reaching its peak at 14.93% by December 31, 2020. However, from March 31, 2021, there was a downward trend observed in the operating ROA.
The operating ROA dropped to 5.42% by March 31, 2022, and continued to decline, reaching its lowest point of 4.33% by September 30, 2023. This significant decline may signal operational challenges or inefficiencies impacting the company's ability to generate profits from its assets.
Although there was a slight improvement in operating ROA by December 31, 2023, and December 31, 2024, the metric remained below the levels seen in the earlier periods. The company may need to focus on improving operational efficiency and profitability to boost its operating ROA in the future.
Overall, the trend in Healthcare Services Group Inc's operating ROA shows a decline over the analyzed period, indicating potential challenges in effectively utilizing its assets to generate operating profits.