Hims Hers Health Inc (HIMS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 126,038 | -23,546 | -65,678 | -107,659 | -18,114 |
| Total assets | US$ in thousands | 707,539 | 441,186 | 366,341 | 420,585 | 118,697 |
| ROA | 17.81% | -5.34% | -17.93% | -25.60% | -15.26% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $126,038K ÷ $707,539K
= 17.81%
Based on the data provided, the return on assets (ROA) for Hims Hers Health Inc has shown fluctuating performance over the years. Beginning with a negative ROA of -15.26% at the end of December 31, 2020, the company's profitability in terms of its assets worsened further by December 31, 2021, with an ROA of -25.60%. However, by December 31, 2022, there was a slight improvement in ROA to -17.93%.
The company's performance notably improved by December 31, 2023, as indicated by a lower negative ROA of -5.34%, suggesting that the company may have started utilizing its assets more efficiently to generate returns. This positive trend continued into December 31, 2024, with a significant turnaround to a positive ROA of 17.81%, indicating that the company was able to generate more profit per dollar of assets during that period.
Overall, the fluctuating trend in ROA from negative values to a positive figure in 2024 may signal improvements in the company's operational efficiency and financial performance, showing that Hims Hers Health Inc has potentially made strides in enhancing its profitability and optimizing the utilization of its assets. However, further analysis and monitoring of the company's ROA will be necessary to assess its sustainability and continued financial health.
Peer comparison
Dec 31, 2024