Select Medical Holdings (SEM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 243,491 | 158,994 | 402,225 | 258,995 | 148,449 |
| Total assets | US$ in thousands | 7,689,630 | 7,665,290 | 7,360,170 | 7,655,400 | 7,340,290 |
| ROA | 3.17% | 2.07% | 5.46% | 3.38% | 2.02% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $243,491K ÷ $7,689,630K
= 3.17%
Select Medical Holdings Corporation's return on assets (ROA) has shown variability over the past five years. In 2023, the company's ROA was 3.05%, which represents an improvement from the previous year's ROA of 2.00%. This increase indicates that the company has become more efficient in generating profits from its assets.
Comparing the 2023 ROA to previous years, it is lower than the exceptional performance in 2021 when the ROA reached 5.28%. This peak in 2021 could be attributed to effective asset utilization or higher profitability relative to the size of its assets. However, the company's ROA has generally been positive and consistent over the years, indicating a stable financial performance.
Investors and stakeholders may view the increasing ROA positively as it reflects the company's ability to generate earnings relative to its total assets. It is crucial for management to continue focusing on optimizing asset utilization to sustain and potentially enhance ROA in the future.
Peer comparison
Dec 31, 2023