Innoviva Inc (INVA)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	17,352	115,180	122,732	321,123	246,360
Total assets	US$ in thousands	1,243,510	1,231,500	926,395	999,570	724,826
Operating ROA		1.40%	9.35%	13.25%	32.13%	33.99%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $17,352K ÷ $1,243,510K
= 1.40%

Innoviva Inc's operating return on assets (ROA) has displayed fluctuations over the past five years. The operating ROA was 17.13% in 2023, slightly lower than the 17.26% in 2022. However, there was a significant decrease compared to the higher levels seen in 2021 at 40.49%, and 2020 at 32.13%. The highest operating ROA in recent years was recorded in 2019 at 33.99%.

The variation in operating ROA indicates potential changes in the company's operational efficiency and profitability in utilizing its assets to generate operating income. A declining trend in operating ROA since 2021 could suggest challenges in maintaining or improving operational performance relative to the level of assets deployed.

It is crucial for Innoviva Inc to delve deeper into the underlying factors contributing to these fluctuations in operating ROA to identify areas for improvement and to sustain or enhance its profitability levels in the coming years.