Neurocrine Biosciences Inc (NBIX)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	250,900	249,000	102,500	163,000	72,300
Total assets	US$ in thousands	3,251,400	2,368,700	2,072,500	1,734,700	1,306,000
Operating ROA		7.72%	10.51%	4.95%	9.40%	5.54%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $250,900K ÷ $3,251,400K
= 7.72%

Neurocrine Biosciences, Inc.'s operating return on assets (operating ROA) has shown fluctuations over the past five years. The operating ROA was 12.14% as of December 31, 2023, representing an increase from the previous year's figure of 10.51% in December 31, 2022. The improvement in operating ROA indicates that the company generated an operating profit of 12.14 cents for every dollar of assets employed in its operations in 2023, compared to 10.51 cents in 2022.

Looking further back, the operating ROA for Neurocrine Biosciences was 10.03% in 2021, 18.88% in 2020, and 17.35% in 2019. The substantial drop in operating ROA from 2020 to 2021 followed by a recovery in subsequent years suggests changes in the company's operational efficiency and asset utilization during these periods.

Overall, the trend in Neurocrine Biosciences, Inc.'s operating ROA indicates some variability in the company's ability to generate operating profits relative to its asset base. Further analysis of the company's operating performance and asset management practices could provide insights into the factors driving these fluctuations in operating ROA.