Merit Medical Systems Inc (MMSI)

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	123,944	120,749	104,269	98,713	87,563	79,042	76,316	61,955	60,916	55,027	39,160	11,270	-1,562	-20,978	-23,923	7,273	15,434	32,504	56,446	59,359
Total assets	US$ in thousands	2,325,240	1,808,500	1,837,570	1,684,110	1,663,970	1,632,740	1,631,520	1,629,740	1,648,290	1,643,170	1,642,390	1,651,720	1,664,400	1,670,510	1,715,870	1,749,270	1,757,320	1,761,700	1,736,270	1,689,790
Operating ROA		5.33%	6.68%	5.67%	5.86%	5.26%	4.84%	4.68%	3.80%	3.70%	3.35%	2.38%	0.68%	-0.09%	-1.26%	-1.39%	0.42%	0.88%	1.85%	3.25%	3.51%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $123,944K ÷ $2,325,240K
= 5.33%

The operating return on assets (operating ROA) for Merit Medical Systems, Inc. has varied over the past eight quarters, ranging from 5.11% to 6.92%. The trend indicates some fluctuations in the company's ability to generate operating income relative to its total assets. The average operating ROA over these quarters is around 6.16%, with Q3 2023 showing the highest level of 6.92% and Q1 2022 the lowest at 5.11%.

A relatively higher operating ROA indicates that the company is effectively utilizing its assets to generate operating profit, while a lower ratio suggests less efficient asset utilization. This metric is crucial for investors and stakeholders to assess the company's operational efficiency and profitability. It would be insightful to further investigate the factors contributing to the fluctuations in Merit Medical Systems' operating ROA to understand its operational performance better.