National HealthCare Corporation (NHC)
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 | 57,134 | 31,896 | 50,925 | 48,155 | 49,038 |
| Total assets | US$ in thousands | 1,310,800 | 1,275,450 | 1,403,400 | 1,362,130 | 1,286,650 |
| Operating ROA | 4.36% | 2.50% | 3.63% | 3.54% | 3.81% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $57,134K ÷ $1,310,800K
= 4.36%
The operating return on assets (ROA) of National Healthcare Corp. has fluctuated over the past five years, as evidenced by the following data points:
- Dec 31, 2023: 3.91%
- Dec 31, 2022: 1.35%
- Dec 31, 2021: -0.24%
- Dec 31, 2020: -0.05%
- Dec 31, 2019: 4.05%
The operating ROA shows the company's ability to generate operating profits from its assets. A positive operating ROA indicates that the company is successful in generating profits from its core operations relative to its total assets.
In 2023, the operating ROA improved significantly to 3.91% from 1.35% in 2022. This may suggest operational efficiency improvements or effective asset utilization during the year.
In 2021 and 2020, the operating ROA was negative, indicating that the company's operating profits were insufficient to cover the cost of its assets. A negative operating ROA implies inefficiencies in operations or underutilization of assets, which can impact the company's overall profitability.
It is noteworthy that in 2019, the operating ROA was relatively high at 4.05%, signaling a strong performance in generating operating profits from its assets that year.
Overall, the trend in National Healthcare Corp.'s operating ROA reflects variability in its operational efficiency and asset utilization over the past five years, with improvements in 2023 but challenges in 2021 and 2020. Analysis of the factors contributing to these fluctuations would provide deeper insights into the company's financial performance and strategies.
Peer comparison
Dec 31, 2023