National HealthCare Corporation (NHC)
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 | 85,760 | 57,134 | 31,896 | 50,925 | 48,155 |
| Total assets | US$ in thousands | 1,524,430 | 1,310,800 | 1,275,450 | 1,403,400 | 1,362,130 |
| Operating ROA | 5.63% | 4.36% | 2.50% | 3.63% | 3.54% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $85,760K ÷ $1,524,430K
= 5.63%
National HealthCare Corporation's operating return on assets (operating ROA) has shown fluctuations over the past five years. As of December 31, 2020, the operating ROA was 3.54%, which slightly increased to 3.63% by the end of 2021. However, in 2022, there was a notable decrease in operating ROA to 2.50%.
The trend reversed in 2023, with the operating ROA significantly improving to 4.36%, indicating a more efficient utilization of assets to generate operating income. This positive trend continued into 2024, with the operating ROA further increasing to 5.63%, reflecting improved operational performance and potential profitability.
Overall, the fluctuations in National HealthCare Corporation's operating ROA suggest varying levels of asset efficiency and profitability over the years, with notable improvements in recent periods. Monitoring this ratio can provide insights into the company's operational efficiency and effectiveness in generating returns from its assets.
Peer comparison
Dec 31, 2024