Molina Healthcare Inc (MOH)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 1,179,000 1,091,000 792,000 659,000 673,000
Total assets US$ in thousands 15,630,000 14,892,000 12,314,000 12,209,000 9,532,000
ROA 7.54% 7.33% 6.43% 5.40% 7.06%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,179,000K ÷ $15,630,000K
= 7.54%

The return on assets (ROA) for Molina Healthcare Inc has exhibited some fluctuations over the past five years. Starting at 7.06% in 2020, the ROA decreased to 5.40% in 2021, indicating a decline in the company's ability to generate profit from its assets. However, the ROA improved in 2022 to 6.43%, showing some recovery. Subsequently, the ROA continued to increase in 2023 to 7.33% and further to 7.54% in 2024, reflecting a positive trend in the company's asset utilization efficiency and profitability. Overall, the upward trajectory of the ROA in recent years suggests improved effectiveness in leveraging its assets to generate earnings for Molina Healthcare Inc.