Sotera Health Co (SHC)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 276,692 | 232,836 | 219,933 | 228,224 | 248,350 | 254,608 | 257,084 | 263,861 | 256,733 | |||
| Total assets | US$ in thousands | 3,130,420 | 3,036,570 | 3,074,870 | 3,414,170 | 3,117,700 | 2,810,630 | 2,839,680 | 2,835,770 | 2,789,500 | 2,742,740 | 2,851,130 | 2,777,000 |
| Operating ROA | 8.84% | 7.67% | 7.15% | 6.68% | 7.97% | 9.06% | 9.05% | 9.30% | 9.20% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $276,692K ÷ $3,130,420K
= 8.84%
To analyze Sotera Health Co's operating return on assets (operating ROA), we can observe a fluctuation in the ratio across the four quarters of 2023. In Q1 2023, the operating ROA stood at 6.68%, which increased to 7.15% in Q2 2023 and further increased to 7.67% in Q3 2023. However, in Q4 2023, the operating ROA decreased slightly to 8.84%.
Comparing the performance in 2023 to that of 2022, there is a noticeable decline in the operating ROA. In the fourth quarter of 2022, the operating ROA was at 7.97%, which was higher than the operating ROA in the same quarter of 2023. This decline indicates a potential decrease in the company's efficiency in generating operating profits from its assets.
Overall, while there was some improvement in the operating ROA throughout 2023, it is essential for Sotera Health Co to closely monitor and manage its assets to ensure sustainable profitability and efficiency in its operations.
Peer comparison
Dec 31, 2023