EchoStar Corporation (SATS)
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 | -277,909 | 2,232,840 | 217,010 | 112,473 | 73,077 |
| Total assets | US$ in thousands | 57,108,900 | 58,748,300 | 6,045,200 | 7,073,350 | 7,154,300 |
| Operating ROA | -0.49% | 3.80% | 3.59% | 1.59% | 1.02% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-277,909K ÷ $57,108,900K
= -0.49%
EchoStar Corporation's operating return on assets (operating ROA) has exhibited fluctuating performance over the past five years. In 2023, the operating ROA stood at -0.49%, indicating a negative return on the company's assets during that period. This sharp decline from the previous year's figure of 3.80% raises concerns about operational efficiency and profitability.
The decline in operating ROA in 2023 may suggest that EchoStar Corporation's operating income generated from its assets was insufficient to cover the costs associated with those assets. This could be a result of increased operating expenses, lower revenue generation, or inefficiencies in asset utilization.
Comparing the operating ROA for 2023 to the figures from the preceding years reveals a significant deviation from the positive trend seen in 2022 (3.80%) and 2021 (3.59%). The drop from 2022 to 2023 may indicate a period of financial challenges or operational difficulties for EchoStar Corporation.
The operating ROA in 2020 (1.59%) and 2019 (1.02%) was lower than the peak in 2022, but higher than the negative value observed in 2023. This indicates that EchoStar Corporation's performance has varied over the years, with 2023 standing out as a particularly poor year in terms of generating returns from its assets.
Analyzing the trend in EchoStar Corporation's operating ROA over the past five years provides valuable insights into the company's operational efficiency and profitability. The negative operating ROA in 2023 raises concerns about the company's ability to effectively utilize its assets to generate profits and may warrant further investigation into the factors contributing to this decline.
Peer comparison
Dec 31, 2023