Healthcare Services Group Inc (HCSG)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 39,471 | 50,149 | 30,625 | 40,667 | 37,029 | 30,590 | 36,406 | 34,972 | 34,630 | 20,576 | 29,794 | 32,539 | 45,863 | 71,505 | 89,609 | 103,145 | 98,682 | 89,830 | 80,530 | 75,615 |
| 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 |
| ROA | 4.92% | 6.22% | 3.83% | 5.06% | 4.61% | 4.07% | 4.78% | 4.86% | 4.82% | 2.85% | 4.03% | 4.36% | 5.90% | 9.01% | 10.95% | 13.18% | 12.57% | 11.91% | 10.93% | 10.33% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $39,471K ÷ $802,772K
= 4.92%
The return on assets (ROA) of Healthcare Services Group Inc has fluctuated over the analyzed period. The ROA increased steadily from 10.33% as of March 31, 2020, reaching a peak of 13.18% as of March 31, 2021. However, after this peak, the ROA started to decline, experiencing a downward trend. The latest available data as of December 31, 2024, shows an ROA of 4.92%.
The declining trend in ROA from the peak in March 2021 suggests that the company may be facing challenges in efficiently utilizing its assets to generate profits. A lower ROA could indicate decreasing profitability relative to the size of the asset base.
It is essential for Healthcare Services Group Inc to closely monitor its asset management strategies and operational efficiency to improve its return on assets and maximize profitability. Further analysis and investigation into the factors contributing to the decreasing ROA are recommended to identify areas for improvement and strategic decision-making.