Molina Healthcare Inc (MOH)
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 | 1,707,000 | 1,573,000 | 1,173,000 | 1,020,000 | 1,078,000 |
| Total assets | US$ in thousands | 15,630,000 | 14,892,000 | 12,314,000 | 12,209,000 | 9,532,000 |
| Operating ROA | 10.92% | 10.56% | 9.53% | 8.35% | 11.31% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,707,000K ÷ $15,630,000K
= 10.92%
Operating ROA, which measures a company's efficiency in generating operating profit from its assets, has shown some fluctuations for Molina Healthcare Inc over the past five years.
In December 2020, the company's operating ROA stood at 11.31%, indicating that for every dollar of assets, Molina Healthcare generated 11.31 cents in operating profit. However, by December 2021, the operating ROA had decreased to 8.35%, suggesting a decline in the company's efficiency in utilizing its assets to generate operating income.
There was a slight improvement in the operating ROA by December 2022, reaching 9.53%, which may imply that Molina Healthcare implemented measures to enhance its operational efficiency. The trend continued in December 2023 and December 2024, with operating ROA figures of 10.56% and 10.92%, respectively, indicating a positive trajectory in the company's ability to generate operating profit from its assets.
Overall, the trend suggests that Molina Healthcare Inc has gradually improved its operating efficiency over the period under review, albeit with some fluctuations. This indicates the company's effectiveness in managing its assets to generate operating income, which is crucial for its financial performance and sustainability.
Peer comparison
Dec 31, 2024