Krystal Biotech Inc (KRYS)

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	-109,727	-145,196	-68,275	-32,999	-22,081
Total assets	US$ in thousands	818,355	558,450	626,295	310,844	209,023
Operating ROA		-13.41%	-26.00%	-10.90%	-10.62%	-10.56%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-109,727K ÷ $818,355K
= -13.41%

Operating Return on Assets (Operating ROA) is a key financial metric that indicates how efficiently a company generates profit from its assets used in its operations. Krystal Biotech Inc's Operating ROA has shown variability over the past five years. In 2023, the company's Operating ROA was -13.41%, representing a slight improvement compared to the previous year. However, the negative value still suggests that the company's operating income generated from its assets was insufficient to cover its asset base.

The significant negative Operating ROA in 2022 at -26.00% indicates that the company experienced challenges in generating operating income relative to its asset base during that period. The downward trend continued in 2021 with an Operating ROA of -10.90%, suggesting that the company's operational efficiency remained an area of concern.

In 2020 and 2019, the company's Operating ROA was relatively stable, both around -10.6%. These values indicate that Krystal Biotech Inc's ability to generate profit from its operational assets was limited in those years.

Overall, the negative values of Operating ROA over the past five years indicate that Krystal Biotech Inc may be experiencing challenges in efficiently utilizing its assets to generate operating income. Further analysis of the company's operational performance and asset management strategies would be crucial to improving its Operating ROA in the future.