Hims Hers Health Inc (HIMS)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 42,907 | 11,979 | -8,287 | -29,453 | -40,658 | -52,087 | -63,041 | -68,697 | -78,657 | -86,335 | -83,552 | -115,042 | -98,103 | -73,763 | -57,335 | -15,144 | -10,762 | -7,891 | -6,929 | |
| Total assets | US$ in thousands | 602,261 | 480,500 | 448,106 | 441,186 | 413,865 | 389,884 | 376,306 | 366,341 | 382,827 | 379,965 | 382,039 | 420,585 | 420,069 | 347,699 | 345,900 | 118,697 | 205,814 | 206,201 | 206,287 | 204,765 |
| Operating ROA | 7.12% | 2.49% | -1.85% | -6.68% | -9.82% | -13.36% | -16.75% | -18.75% | -20.55% | -22.72% | -21.87% | -27.35% | -23.35% | -21.21% | -16.58% | -12.76% | -5.23% | -3.83% | -3.36% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $42,907K ÷ $602,261K
= 7.12%
Hims Hers Health Inc's operating return on assets (operating ROA) has fluctuated over the past several quarters. The trend shows improvement from negative percentages to positive percentages, indicating a better utilization of assets to generate operating income. However, the company's operating ROA still remains relatively low compared to industry standards. It is notable that there was a significant improvement from the lowest point in Dec 2021 to the most recent quarter in Sep 2024, with the operating ROA increasing from -27.35% to 7.12%.
The increasing trend in operating ROA suggests that the company's operational efficiency and profitability have improved, possibly due to better cost management, revenue growth, or strategic initiatives. Investors and stakeholders may view this as a positive sign of financial health and management effectiveness. It would be important to monitor if this improving trend continues in future quarters to ensure sustainable growth and profitability.