Innoviva Inc (INVA)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 229,367 | 176,709 | 209,991 | 375,103 | 321,123 |
| Total assets | US$ in thousands | 1,301,060 | 1,243,510 | 1,231,500 | 926,395 | 999,570 |
| Operating ROA | 17.63% | 14.21% | 17.05% | 40.49% | 32.13% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $229,367K ÷ $1,301,060K
= 17.63%
The operating return on assets (ROA) of Innoviva Inc demonstrates varying levels of performance over the years covered in the data provided. In December 2020, the operating ROA was 32.13%, indicating that the company generated $0.3213 in operating income for every dollar of assets it held. This figure increased to 40.49% by December 2021, reflecting improved efficiency in asset utilization. However, there was a significant drop in operating ROA to 17.05% by December 2022, possibly suggesting challenges in maintaining profitability relative to asset base.
Subsequently, the operating ROA decreased further to 14.21% by December 2023, signaling a continued decline in operating efficiency and possibly signaling a need for operational improvements to enhance profitability levels. The latest data point, December 31, 2024, shows a slight improvement in operating ROA to 17.63%, although it is still below the levels observed in 2021.
Overall, the trend in Innoviva Inc's operating ROA indicates fluctuations in the company's ability to generate operating income from its assets effectively. It is crucial for management to evaluate the factors contributing to these fluctuations and implement strategies to enhance operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024