Select Medical Holdings (SEM)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 266,210 605,048 464,400 465,625 425,399 398,010 488,992 450,755 403,283 393,958 452,746 615,747 713,774 799,564 805,441 640,991 567,657 516,697 483,471 488,835
Total assets US$ in thousands 5,607,950 8,002,660 7,875,300 7,858,260 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
Operating ROA 4.75% 7.56% 5.90% 5.93% 5.53% 5.18% 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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $266,210K ÷ $5,607,950K
= 4.75%

Select Medical Holdings' operating return on assets (ROA) has shown fluctuations over the periods provided. The operating ROA ranged from a low of 5.18% on September 30, 2023, to a high of 10.12% on both June 30, 2021, and September 30, 2021.

The overall trend indicates some variability in the company's ability to generate profits from its assets over the periods. Notably, there was a general increase in operating ROA from the beginning of the data set in March 2020, peaking in the middle of 2021, before gradually declining towards the end of 2024.

It is essential to monitor this metric closely to understand the company's operational efficiency and profitability relative to its asset base. Fluctuations in operating ROA can be indicative of changes in operational performance, asset management efficiency, or financial leverage. Further analysis may be needed to identify the factors driving these fluctuations and assess the long-term sustainability of the company's profitability.


Peer comparison

Dec 31, 2024

Company name
Symbol
Operating ROA
Select Medical Holdings
SEM
4.75%
Encompass Health Corp
EHC
13.23%
Mednax Inc
MD
6.79%