Omnicell Inc (OMCL)
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 | -34,868 | -2,323 | 89,507 | 35,526 | 78,352 |
| Total assets | US$ in thousands | 2,226,880 | 2,210,760 | 2,142,500 | 1,824,500 | 1,240,810 |
| Operating ROA | -1.57% | -0.11% | 4.18% | 1.95% | 6.31% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-34,868K ÷ $2,226,880K
= -1.57%
Omnicell, Inc.'s operating return on assets (ROA) has shown a declining trend over the past five years, from 6.31% in 2019 to -1.57% in 2023. This indicates that the company's operating income generated from its assets has been decreasing. The negative operating ROA in 2023 is a cause for concern as it suggests that the company's operating income is not sufficient to cover the assets employed in its operations, resulting in a loss.
The fluctuation in operating ROA between positive and negative values over the period indicates a lack of stability in the company's operational efficiency and profitability. It is important for Omnicell, Inc. to closely monitor and improve its operational performance to enhance its operating ROA. Further analysis of the company's operating expenses, asset utilization, and revenue generation may provide insights into areas requiring improvement to reverse the declining trend in operating ROA.
Peer comparison
Dec 31, 2023