Select Medical Holdings (SEM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 214,038 | 243,491 | 158,994 | 402,225 | 258,995 |
| Total assets | US$ in thousands | 5,607,950 | 7,689,630 | 7,665,290 | 7,360,170 | 7,655,400 |
| ROA | 3.82% | 3.17% | 2.07% | 5.46% | 3.38% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $214,038K ÷ $5,607,950K
= 3.82%
Select Medical Holdings' return on assets (ROA) has fluctuated over the past five years, ranging from 2.07% to 5.46%. In 2021, the ROA showed a significant improvement, reaching 5.46%, indicating that the company generated $5.46 in profit for every $100 in assets. However, in 2022, there was a notable decline in ROA to 2.07%, suggesting a decrease in profitability relative to its asset base. The ROA then bounced back in 2023 and 2024, with values of 3.17% and 3.82% respectively.
Overall, the ROA trend indicates that Select Medical Holdings has been able to generate a moderate return on its assets over the period under review, with varying levels of efficiency and profitability. Further assessment of the company's operations and capital structure may be necessary to understand the factors contributing to these fluctuations in ROA.
Peer comparison
Dec 31, 2024