HealthStream Inc (HSTM)

Return on assets (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
Net income (ttm)	US$ in thousands	15,213	13,072	12,871	11,821	12,091	9,255	7,089	6,447	5,845	7,155	8,289	9,290	14,091	16,851	17,929	16,888	15,770	14,877	14,201	14,345
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
ROA		3.04%	2.62%	2.61%	2.35%	2.43%	1.92%	1.48%	1.33%	1.20%	1.45%	1.67%	1.85%	2.82%	3.54%	3.75%	3.51%	3.22%	3.10%	2.98%	2.97%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $15,213K ÷ $499,942K
= 3.04%

To analyze Healthstream Inc's return on assets (ROA) based on the provided data, we observe a fluctuating trend in ROA over the past eight quarters. ROA measures the company's ability to generate profit from its assets, with higher percentages indicating more efficient asset utilization.

Throughout the quarters, Healthstream Inc ROA has shown an overall increasing trend from Q1 2022 to Q4 2023. In Q1 2022, the ROA was at 1.33%, gradually increasing to 3.04% in Q4 2023. This improvement signifies enhanced efficiency in generating profits relative to the assets employed.

The highest ROA was recorded in Q4 2023 at 3.04%, indicating that the company was able to generate a profit of 3.04% for every dollar of assets. This could be attributed to effective management of assets and increased profitability.

On the other hand, the lowest ROA was observed in Q1 2022 at 1.33%, suggesting lower profitability relative to the assets during that period. However, the consistent upward trend in ROA indicates a positive trajectory for Healthstream Inc's asset utilization efficiency over the quarters.

Overall, the improving trend in ROA reflects positively on Healthstream Inc's ability to generate profits from its assets, showcasing potential enhancements in operational efficiency and profitability over time.