Healthcare Services Group Inc (HCSG)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 39,471 | 38,386 | 34,243 | 48,543 | 98,682 |
| Total assets | US$ in thousands | 802,772 | 790,652 | 718,334 | 777,529 | 785,031 |
| ROA | 4.92% | 4.85% | 4.77% | 6.24% | 12.57% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $39,471K ÷ $802,772K
= 4.92%
Healthcare Services Group Inc's return on assets (ROA) has shown a declining trend over the past five years, decreasing from 12.57% as of December 31, 2020, to 4.92% as of December 31, 2024. This indicates a reduction in the company's ability to generate profits relative to its total assets. A decreasing ROA could suggest that the company is becoming less efficient in utilizing its assets to generate earnings over time. It is important for the company to closely monitor and address the factors contributing to this decline to improve its profitability and operational efficiency in the future.