HealthStream Inc (HSTM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 21,287 | 16,019 | 12,449 | 8,055 | 15,818 |
| Total assets | US$ in thousands | 510,766 | 499,942 | 497,741 | 486,753 | 500,313 |
| Operating ROA | 4.17% | 3.20% | 2.50% | 1.65% | 3.16% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $21,287K ÷ $510,766K
= 4.17%
HealthStream Inc's operating return on assets (operating ROA) is a key financial ratio used to evaluate the company's operational efficiency in generating profits relative to its asset base. The trend analysis of HealthStream Inc's operating ROA over the past five years indicates fluctuations in performance.
As of December 31, 2020, the operating ROA stood at 3.16%, reflecting a healthy profitability level. However, there was a decrease in operating ROA to 1.65% by December 31, 2021, suggesting a decrease in operational efficiency or profitability relative to its asset base.
The subsequent years saw some improvements in performance, with the operating ROA increasing to 2.50% by December 31, 2022, and further to 3.20% by December 31, 2023. These increases indicate enhanced operational efficiency and profitability for HealthStream Inc during these periods.
By December 31, 2024, HealthStream Inc's operating ROA reached 4.17%, representing a significant improvement compared to the previous years. This suggests that the company managed to effectively utilize its assets to generate higher returns, indicating improved operational performance and profitability.
Overall, the trend in HealthStream Inc's operating ROA shows some fluctuations over the past five years, with periods of decline followed by subsequent improvements. It is crucial for investors and stakeholders to monitor this ratio to assess the company's operational efficiency and profitability going forward.
Peer comparison
Dec 31, 2024