Neurocrine Biosciences Inc (NBIX)
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 | 570,500 | 250,900 | 249,000 | 102,500 | 163,000 |
| Total assets | US$ in thousands | 3,718,700 | 3,251,400 | 2,368,700 | 2,072,500 | 1,734,700 |
| Operating ROA | 15.34% | 7.72% | 10.51% | 4.95% | 9.40% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $570,500K ÷ $3,718,700K
= 15.34%
Neurocrine Biosciences Inc's operating return on assets (operating ROA) has exhibited some fluctuations over the past five years. The trend shows a decline from 9.40% as of December 31, 2020, to 4.95% as of December 31, 2021. However, there was a notable increase in the operating ROA to 10.51% as of December 31, 2022. Subsequently, the metric decreased to 7.72% as of December 31, 2023, before experiencing a substantial uptick to 15.34% as of December 31, 2024.
The fluctuations in operating ROA suggest varying levels of operational efficiency and profitability in utilizing the company's assets to generate earnings. A rising trend in operating ROA indicates improving operational performance, while a declining trend may raise concerns about asset utilization efficiency. The significant increase in operating ROA observed in 2024 could reflect improved operational efficiency or changes in the company's asset base that positively impacted profitability.
Overall, monitoring Neurocrine Biosciences Inc's operating ROA over time can provide insights into the company's ability to generate profits from its operational activities relative to its asset base and assess the effectiveness of its asset management strategies.
Peer comparison
Dec 31, 2024