Hims Hers Health Inc (HIMS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -23,546 | -65,678 | -107,659 | -18,114 | -72,064 |
| Total assets | US$ in thousands | 441,186 | 366,341 | 420,585 | 118,697 | 204,765 |
| ROA | -5.34% | -17.93% | -25.60% | -15.26% | -35.19% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-23,546K ÷ $441,186K
= -5.34%
Hims Hers Health Inc's return on assets (ROA) has exhibited fluctuations over the past five years. The ROA was -5.34% as of December 31, 2023, representing an improvement from the prior year. However, the company's ROA was significantly negative in the preceding years, with values of -17.93%, -25.60%, -15.26%, and -35.19% as of December 31, 2022, 2021, 2020, and 2019, respectively.
The negative ROA values indicate that the company's net income generated from its assets was insufficient to cover the costs associated with those assets. This could imply operational inefficiencies, low profitability, or high asset utilization without proportionate earnings.
The recent improvement in ROA in 2023 may suggest that Hims Hers Health Inc is taking steps to enhance its asset utilization and profitability. However, further analysis, including a review of the company's financial performance and strategy, is recommended to fully understand the factors driving these changes in ROA.