Mednax Inc (MD)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -99,069 | -253,836 | -233,004 | -51,697 | -41,526 | 112,420 | 102,875 | 101,729 | 66,578 | 84,435 | 84,502 | 92,377 | 130,964 | 19,152 | -52,687 | -760,134 | -796,488 | -722,861 | -1,937,737 | -1,273,546 |
| Total assets | US$ in thousands | 2,152,700 | 2,076,870 | 1,995,350 | 2,168,160 | 2,219,810 | 2,326,340 | 2,305,510 | 2,320,050 | 2,347,890 | 2,331,960 | 2,369,620 | 2,340,980 | 2,722,550 | 2,646,100 | 2,555,130 | 2,483,740 | 3,347,950 | 3,424,830 | 3,387,210 | 4,319,660 |
| ROA | -4.60% | -12.22% | -11.68% | -2.38% | -1.87% | 4.83% | 4.46% | 4.38% | 2.84% | 3.62% | 3.57% | 3.95% | 4.81% | 0.72% | -2.06% | -30.60% | -23.79% | -21.11% | -57.21% | -29.48% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $-99,069K ÷ $2,152,700K
= -4.60%
Return on assets (ROA) is a financial ratio that measures a company's ability to generate profit from its assets. A higher ROA indicates better efficiency in utilizing assets to generate earnings.
Analyzing Mednax Inc's ROA over the past few years, we observe a significant improvement in the metric. The company's ROA was negative in the initial periods, indicating operational inefficiencies and loss-making ventures. However, starting from the third quarter of 2021, Mednax Inc began to consistently improve its ROA, turning it positive and showing a steady upward trend.
From the data provided, we can see that Mednax Inc's ROA has been consistently positive from the fourth quarter of 2021 to the fourth quarter of 2023, with fluctuations in the range of 2.84% to 4.83%. These positive ROA figures indicate that the company has been effectively utilizing its assets to generate profits during this period.
However, in the subsequent periods, particularly in the first half of 2024, Mednax Inc experienced a decline in its ROA, with negative values recorded once again. This reversal could raise concerns about the company's asset efficiency and profitability during this specific timeframe.
In conclusion, based on the trend observed, it appears that Mednax Inc made significant improvements in its asset utilization and profitability from 2021 to 2023. Nevertheless, the recent decline in ROA in 2024 suggests a need for further investigation into the company's operational performance and asset management strategies during that period.
Peer comparison
Dec 31, 2024