Mednax Inc (MD)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -68,713 | 7,321 | 172,688 | 202,918 | 173,518 |
| Total assets | US$ in thousands | 2,152,700 | 2,219,810 | 2,347,890 | 2,722,550 | 3,347,950 |
| Operating ROA | -3.19% | 0.33% | 7.36% | 7.45% | 5.18% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-68,713K ÷ $2,152,700K
= -3.19%
The operating return on assets (operating ROA) for Mednax Inc has fluctuated over the past few years. The trend shows an increase from 5.18% in December 2020 to 7.45% in December 2021, indicating improved efficiency in generating operating income relative to its assets. This positive momentum continued in December 2022 with a slightly lower but still strong operating ROA of 7.36%.
However, there was a sharp decline in performance by December 2023, where the operating ROA dropped significantly to 0.33%, suggesting potential challenges or inefficiencies in utilizing assets to generate operating profits. The situation worsened in December 2024, with an operating ROA of -3.19%, indicating that operating income was insufficient to cover the assets employed, leading to a negative return.
Overall, it is crucial for Mednax Inc to closely monitor and address the factors contributing to this decline to improve the operating performance and ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2024