HealthStream Inc (HSTM)
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 | 16,019 | 12,449 | 8,055 | 15,818 | 14,720 |
| Total assets | US$ in thousands | 499,942 | 497,741 | 486,753 | 500,313 | 489,544 |
| Operating ROA | 3.20% | 2.50% | 1.65% | 3.16% | 3.01% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $16,019K ÷ $499,942K
= 3.20%
Healthstream Inc's operating return on assets (ROA) has fluctuated over the past five years. In 2023, the operating ROA improved to 3.20%, indicating that the company generated $3.20 in operating income for every $100 of assets. This was a positive sign of efficiency and profitability compared to the 2.50% in 2022 and the 1.65% in 2021, where the company was less effective in utilizing its assets to generate operating income.
It is noteworthy that in 2020, the operating ROA was 3.16%, slightly lower than the 2023 figure but higher than the immediately preceding years. This suggests that the company may have faced challenges in 2020 that affected its profitability, but managed to bounce back in 2023.
Comparing the 2023 operating ROA to 2019, when it was at 3.01%, shows a slight improvement over the years. Despite some fluctuations, the company has generally maintained a relatively stable operating ROA within a narrow range.
Overall, the trend in operating ROA for Healthstream Inc indicates a positive performance in utilizing its assets efficiently to generate operating income in 2023 compared to the previous years. It is important for the company to continue monitoring and improving its operating ROA to ensure sustainable profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2023