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.