Innoviva Inc (INVA)

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	173,378	167,764	208,364	163,865	185,791	173,013	107,359	179,726	209,724	289,504	359,363	373,349	375,103	355,363	345,240	324,491	321,123	309,975	286,338	270,307
Total assets	US$ in thousands	1,301,060	1,231,610	1,224,920	1,267,610	1,243,510	1,188,100	1,118,240	1,129,770	1,231,500	1,327,710	1,137,640	1,107,470	926,395	887,239	789,150	1,088,290	999,570	922,256	879,619	788,011
Operating ROA		13.33%	13.62%	17.01%	12.93%	14.94%	14.56%	9.60%	15.91%	17.03%	21.80%	31.59%	33.71%	40.49%	40.05%	43.75%	29.82%	32.13%	33.61%	32.55%	34.30%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $173,378K ÷ $1,301,060K
= 13.33%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profits relative to its total assets.

Analyzing the operating ROA trend for Innoviva Inc from March 2020 to December 2024, we observe fluctuations in the ratio over the period.

The ratio started at a healthy level of 34.30% in March 2020, indicating that the company was efficient in generating operating income compared to its asset base. The ratio remained relatively stable around the 30% mark until June 2021, where it spiked significantly to 43.75%, suggesting a period of strong operating performance.

However, from September 2021 onwards, the operating ROA began to decline steadily, reaching a low of 9.60% in June 2023. This sharp decrease indicates a potential decrease in operational efficiency or profitability compared to the asset base during this period.

Although there was a slight improvement in the ratio in the subsequent quarters, it remained below the levels seen in the earlier years. The last reported operating ROA as of December 2024 stood at 13.33%.

Overall, the fluctuating trend in Innoviva Inc's operating ROA suggests varying levels of operational efficiency and profitability over the period under review. The company may need to further analyze the factors contributing to the fluctuations in the ratio to improve its operating performance and ensure optimal utilization of its assets.