Hims Hers Health Inc (HIMS)
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 | -29,453 | -68,697 | -115,042 | -15,144 | -74,414 |
| Total assets | US$ in thousands | 441,186 | 366,341 | 420,585 | 118,697 | 204,765 |
| Operating ROA | -6.68% | -18.75% | -27.35% | -12.76% | -36.34% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-29,453K ÷ $441,186K
= -6.68%
Hims Hers Health Inc's operating return on assets (operating ROA) has fluctuated significantly over the past five years. In 2023, the operating ROA improved to -6.68% from -18.75% in 2022, indicating a positive trend in the company's ability to generate operating income relative to its assets. However, the operating ROA remains negative, suggesting ongoing challenges in efficiently utilizing assets to generate profits.
The sharp decline in operating ROA from 2019 to 2020 (-36.34% to -12.76%) followed by a further decrease in 2021 (-27.35%) reflects operational struggles or inefficiencies during those periods. The recent improvement in 2023 may indicate management efforts to enhance operating performance, but further analysis is needed to determine the sustainability of this improvement.
Overall, the historical trend of negative operating ROA signals potential concerns regarding the company's operational effectiveness and asset utilization efficiency. Investors and stakeholders should closely monitor future financial performance to assess the company's ability to generate profits from its assets in the long term.