Select Medical Holdings (SEM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 554,874 | 527,485 | 488,992 | 450,755 | 403,283 | 393,958 | 452,746 | 615,747 | 713,774 | 799,564 | 805,441 | 640,991 | 567,657 | 516,697 | 483,471 | 488,835 | 471,881 | 447,795 | 424,726 | 420,405 |
| Total assets | US$ in thousands | 7,689,630 | 7,684,010 | 7,701,870 | 7,699,740 | 7,665,290 | 7,554,980 | 7,551,660 | 7,535,940 | 7,360,170 | 7,899,470 | 7,956,380 | 7,920,780 | 7,655,400 | 7,659,880 | 7,468,460 | 7,115,570 | 7,340,290 | 7,154,760 | 7,106,940 | 7,021,490 |
| Operating ROA | 7.22% | 6.86% | 6.35% | 5.85% | 5.26% | 5.21% | 6.00% | 8.17% | 9.70% | 10.12% | 10.12% | 8.09% | 7.42% | 6.75% | 6.47% | 6.87% | 6.43% | 6.26% | 5.98% | 5.99% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $554,874K ÷ $7,689,630K
= 7.22%
The operating return on assets (operating ROA) of Select Medical Holdings Corporation has shown a generally increasing trend over the past eight quarters, with fluctuations observed. In Q4 2023, the operating ROA stood at 7.19%, indicating that the company generated $0.0719 in operating income for every dollar of assets employed in its operations during that quarter.
The steady improvement in operating ROA from 4.89% in Q4 2022 to 7.19% in Q4 2023 suggests that the company has been more efficient in utilizing its assets to generate operating profits. This could be attributed to various factors such as enhancing operational efficiency, cost management, or revenue growth strategies.
However, it is worth noting that there have been occasional fluctuations in the operating ROA over the quarters, with a slight decline in Q3 2023 compared to Q2 2023. This may indicate short-term challenges or fluctuations in operational performance.
Overall, the increasing trend in operating ROA signifies that Select Medical Holdings Corporation has been effective in improving its operational profitability relative to its asset base. Investors and stakeholders may see this trend as a positive indicator of the company's operational efficiency and potential for generating returns on its assets in the future.
Peer comparison
Dec 31, 2023