Grand Canyon Education Inc (LOPE)

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	249,256	237,500	282,190	277,437	265,131
Total assets	US$ in thousands	930,463	832,749	1,222,740	1,844,580	1,690,290
Operating ROA		26.79%	28.52%	23.08%	15.04%	15.69%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $249,256K ÷ $930,463K
= 26.79%

Grand Canyon Education Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The company achieved a peak operating ROA of 28.52% in 2022, indicating that it generated $0.2852 in operating income for every dollar of assets employed. However, in 2023, the operating ROA declined to 26.79%, which is still a relatively strong performance.

Comparing the latest operating ROA to previous years, it is evident that Grand Canyon Education Inc has been able to maintain generally high operating efficiency over time. The 2023 operating ROA of 26.79% indicates the company's ability to effectively generate profits from its assets, although it is slightly lower than the peak in 2022. This suggests that the company has been relatively successful in managing its assets to generate operating income efficiently.

Overall, the varying operating ROA figures over the past five years indicate that Grand Canyon Education Inc has experienced fluctuations in operating efficiency. However, the company's ability to consistently achieve double-digit operating ROA figures reflects its overall strong performance in utilizing its assets to generate operating income.