HealthStream Inc (HSTM)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	16,016	14,839	12,358	11,303	12,447	8,910	8,313	8,791	8,056	9,653	11,002	11,875	15,819	18,018	18,632	16,596	14,721	14,222	15,135	17,131
Total assets	US$ in thousands	499,942	498,050	493,474	503,159	497,741	481,197	477,704	483,926	486,753	494,714	496,302	501,682	500,313	476,557	477,825	481,511	489,544	480,197	476,451	483,500
Operating ROA		3.20%	2.98%	2.50%	2.25%	2.50%	1.85%	1.74%	1.82%	1.66%	1.95%	2.22%	2.37%	3.16%	3.78%	3.90%	3.45%	3.01%	2.96%	3.18%	3.54%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $16,016K ÷ $499,942K
= 3.20%

The operating return on assets (operating ROA) of Healthstream Inc has shown a positive trend over the past eight quarters, gradually increasing from 1.82% in Q1 2022 to 3.20% in Q4 2023. This indicates that the company is effectively generating operating profits relative to its total assets. The average operating ROA over this period was approximately 2.36%, suggesting that Healthstream Inc has been efficiently utilizing its assets to generate operating income. The consistent improvement in operating ROA reflects positively on the company's operational efficiency and effectiveness in managing its assets.