HealthStream Inc (HSTM)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	21,288	20,855	19,220	18,817	16,018	14,841	12,360	11,305	12,449	8,910	8,313	8,791	8,056	9,653	11,002	11,875	15,819	18,019	18,633	16,597
Total assets	US$ in thousands	510,766	502,831	499,555	511,605	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
Operating ROA		4.17%	4.15%	3.85%	3.68%	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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $21,288K ÷ $510,766K
= 4.17%

HealthStream Inc's operating return on assets (Operating ROA) has shown fluctuations over the past few years. The Operating ROA started at 3.45% on March 31, 2020, and reached its peak at 4.17% on December 31, 2024.

Despite these variations, the Operating ROA generally displayed a downward trend in the earlier years, dropping from 3.45% on March 31, 2020, to 2.22% on June 30, 2021. This decline continued until December 31, 2022, reaching its lowest point at 1.66%.

However, from March 31, 2023, HealthStream Inc's Operating ROA began to recover, showing an upward trend. The company's performance improved steadily, with the Operating ROA increasing to 4.17% on December 31, 2024.

Overall, fluctuations in HealthStream Inc's Operating ROA indicate varying levels of efficiency in generating operating income relative to its assets over the analyzed period. It is essential for the company to monitor and manage its operating efficiency to ensure sustainable profitability and value creation for its stakeholders.