Grand Canyon Education Inc (LOPE)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	249,256	242,135	236,109	234,512	237,500	249,222	259,026	275,429	282,190	277,082	282,805	280,867	277,437	262,117	270,812	273,496	265,131	263,308	232,994	240,488
Total assets	US$ in thousands	930,463	863,156	846,217	874,021	832,749	784,544	787,303	918,386	1,222,740	1,680,460	1,846,970	1,885,030	1,844,580	1,800,560	1,790,280	1,731,600	1,690,290	1,760,670	1,677,520	1,619,470
Operating ROA		26.79%	28.05%	27.90%	26.83%	28.52%	31.77%	32.90%	29.99%	23.08%	16.49%	15.31%	14.90%	15.04%	14.56%	15.13%	15.79%	15.69%	14.95%	13.89%	14.85%

December 31, 2023 calculation

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

Operating return on assets (ROA) is a key financial ratio that measures a company's efficiency in generating operating income relative to its total assets. Grand Canyon Education Inc's operating ROA has shown a steady trend over the past eight quarters. The ratio ranged from a high of 32.90% in Q2 2022 to a low of 26.79% in Q4 2023, indicating fluctuations in the company's operating efficiency and asset utilization.

Overall, Grand Canyon Education Inc's operating ROA remained relatively strong, with an average of around 28.65% over the eight quarters. This suggests that the company has been effective in generating operating income from its assets during the period under review. However, the slight downward trend in the most recent quarters may warrant further investigation to identify potential reasons for the decline in operating efficiency or asset utilization.