Perdoceo Education Corp (PRDO)

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	174,253	150,446	129,637	149,016	142,934
Total assets	US$ in thousands	1,237,030	1,007,320	957,368	847,433	721,517
Operating ROA		14.09%	14.94%	13.54%	17.58%	19.81%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $174,253K ÷ $1,237,030K
= 14.09%

Based on the provided data, Perdoceo Education Corp's operating return on assets (operating ROA) has displayed a declining trend over the past five years. In December 2020, the operating ROA stood at 19.81%, indicating that for every dollar of assets the company possessed, it generated a profit of approximately 19.81 cents from its operations.

However, by December 2021, the operating ROA decreased to 17.58%, suggesting a slight decline in the company's efficiency in utilizing its assets to generate operating income. This trend continued into December 2022, with the operating ROA further dropping to 13.54%, signifying a more significant decrease in profitability relative to the company's asset base.

Nevertheless, there was a slight improvement in December 2023, where the operating ROA increased to 14.94%, indicating a partial recovery in the company's operational efficiency in generating income from its assets. By December 2024, the operating ROA remained relatively stable at 14.09%, suggesting some stability in the company's ability to generate operating income relative to its asset investment.

Overall, despite fluctuations, Perdoceo Education Corp's operating ROA trended downward from 19.81% in December 2020 to 14.09% in December 2024, highlighting the importance of monitoring and managing the company's asset utilization efficiency to enhance profitability in the future.