Pacira BioSciences, Inc. (PCRX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -99,560 | 41,955 | 15,909 | 41,980 | 145,523 |
| Total assets | US$ in thousands | 1,553,520 | 1,574,390 | 1,681,200 | 2,075,350 | 1,274,510 |
| ROA | -6.41% | 2.66% | 0.95% | 2.02% | 11.42% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-99,560K ÷ $1,553,520K
= -6.41%
The return on assets (ROA) measures a company's efficiency in generating profits from its assets. Looking at the data provided for Pacira BioSciences, Inc., the company's ROA has been fluctuating over the years.
In 2020, Pacira BioSciences, Inc. had an ROA of 11.42%, indicating that the company was able to generate a significant return on its assets. However, in subsequent years, the ROA showed a downward trend. The ROA dropped to 2.02% in 2021, further declining to 0.95% in 2022, and then slightly improved to 2.66% in 2023.
The most concerning observation is in 2024 when the company's ROA turned negative to -6.41%. A negative ROA typically suggests that the company is not effectively utilizing its assets to generate profits and may be experiencing operational inefficiencies or financial difficulties.
Overall, the trend in Pacira BioSciences, Inc.'s ROA reflects a mix of both positive and negative performance indicators. It is essential for the company to focus on improving its asset utilization efficiency to enhance profitability and sustainable growth in the future.
Peer comparison
Dec 31, 2024