Lantheus Holdings Inc (LNTH)

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	364,642	36,195	-60,825	-4,198	51,661
Total assets	US$ in thousands	1,651,150	1,321,260	863,784	869,821	405,919
Operating ROA		22.08%	2.74%	-7.04%	-0.48%	12.73%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $364,642K ÷ $1,651,150K
= 22.08%

Lantheus Holdings Inc's operating return on assets (operating ROA) has exhibited significant fluctuation over the past five years. In 2023, the operating ROA stood at 22.08%, marking a substantial improvement compared to the previous year. This sharp increase indicates that the company's operating income generated from its assets has increased significantly, reflecting more efficient asset utilization and profitability.

The performance in 2022, with an operating ROA of 2.74%, was comparatively lower, but still positive. This suggests that the company was able to generate a modest return from its assets during that period.

In 2021, Lantheus Holdings experienced a negative operating ROA of -8.81%, indicating that the company's operating income was insufficient to cover the asset base. This could be attributed to lower profitability or inefficient asset management during the year.

Similarly, in 2020, the operating ROA was negative at -0.48%, signaling a continuation of the challenges faced in 2021.

The operating ROA was notably strong in 2019 at 12.73%, indicating that the company was able to generate a healthy return on its assets that year.

Overall, the trend in Lantheus Holdings Inc's operating ROA indicates volatility in the company's ability to generate operating income from its asset base. It is essential for the company to sustain and improve its operating ROA over time to ensure long-term profitability and financial stability.