HealthStream Inc (HSTM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 20,007 | 15,213 | 12,091 | 5,845 | 14,091 |
| Total assets | US$ in thousands | 510,766 | 499,942 | 497,741 | 486,753 | 500,313 |
| ROA | 3.92% | 3.04% | 2.43% | 1.20% | 2.82% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $20,007K ÷ $510,766K
= 3.92%
Based on the data provided, HealthStream Inc's Return on Assets (ROA) has shown varying trends over the past five years.
- In December 31, 2020, the ROA was at 2.82%, indicating that the company generated a profit of 2.82% for every dollar of assets it owns.
- However, by December 31, 2021, the ROA decreased to 1.20%, reflecting a decline in the company's profitability relative to its assets.
- The trend reversed in December 31, 2022, when the ROA improved to 2.43%, suggesting that the company became more efficient in generating profits from its assets.
- By December 31, 2023, the ROA further increased to 3.04%, indicating a significant improvement in the company's ability to utilize its assets effectively.
- The most recent data point, December 31, 2024, shows a ROA of 3.92%, indicating that HealthStream Inc's profitability relative to its assets continued to strengthen.
Overall, HealthStream Inc's ROA has demonstrated fluctuations but generally shows an increasing trend over the five-year period. This indicates that the company has been able to effectively manage and utilize its assets to generate higher profits, which is a positive sign for investors and stakeholders.
Peer comparison
Dec 31, 2024