National HealthCare Corporation (NHC)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 101,927 | 66,798 | 22,445 | 138,590 | 41,871 |
| Total assets | US$ in thousands | 1,524,430 | 1,310,800 | 1,275,450 | 1,403,400 | 1,362,130 |
| ROA | 6.69% | 5.10% | 1.76% | 9.88% | 3.07% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $101,927K ÷ $1,524,430K
= 6.69%
Based on the provided data, the return on assets (ROA) for National HealthCare Corporation has shown fluctuations over the years. In 2020, the ROA was 3.07%, indicating that the company generated 3.07 cents in profit for every dollar of assets it owned. This increased significantly to 9.88% in 2021, reflecting improved efficiency in utilizing its assets to generate profits.
However, in 2022, there was a decline in ROA to 1.76%, suggesting a decrease in profitability relative to the assets employed by the company. Subsequently, in 2023, the ROA improved to 5.10%, indicating a better utilization of assets to generate profits. Finally, in 2024, the ROA further increased to 6.69%, demonstrating continued positive performance in generating returns from its assets.
Overall, the varying ROA figures highlight the fluctuating efficiency of National HealthCare Corporation in generating profits from its asset base over the years, with notable improvements in some periods and declines in others. Monitoring and analyzing ROA trends can provide insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024