Select Medical Holdings (SEM)
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 | 554,874 | 403,283 | 713,774 | 567,657 | 471,881 |
| Total assets | US$ in thousands | 7,689,630 | 7,665,290 | 7,360,170 | 7,655,400 | 7,340,290 |
| Operating ROA | 7.22% | 5.26% | 9.70% | 7.42% | 6.43% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $554,874K ÷ $7,689,630K
= 7.22%
Select Medical Holdings Corporation's operating return on assets (operating ROA) has been relatively stable over the past five years, ranging from 4.89% in 2022 to 7.74% in 2021. The operating ROA measures the company's ability to generate profits from its operating activities relative to its total assets.
The increase in operating ROA from 2020 to 2021 indicates improved efficiency in utilizing its assets to generate operating income. However, the slight decrease in 2023 compared to 2021 suggests a potential decline in profitability relative to its asset base.
Overall, Select Medical Holdings Corporation has maintained a reasonable level of operating efficiency in generating returns from its assets, but there may be room for improvement to ensure sustained profitability and efficient asset utilization in the future.
Peer comparison
Dec 31, 2023