Sotera Health Co (SHC)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 51,376 | -307,024 | -268,274 | -261,369 | -233,570 | 122,146 | 124,500 | 136,681 | 116,882 |
| 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 |
| ROA | 1.64% | -10.11% | -8.72% | -7.66% | -7.49% | 4.35% | 4.38% | 4.82% | 4.19% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $51,376K ÷ $3,130,420K
= 1.64%
The return on assets (ROA) of Sotera Health Co has been fluctuating over the past eight quarters. The ROA was positive in Q4 2023 at 1.64%, indicating that the company generated a profit from its assets during that period. However, in the preceding three quarters, the ROA was negative, suggesting that the company experienced losses relative to its assets.
The most significant negative ROA was recorded in Q3 2023 at -10.09%, followed by -8.71% in Q2 2023 and -7.65% in Q1 2023. These consecutive negative ROA figures raise concerns about the company's profitability and asset utilization efficiency during those quarters.
Compared to the same quarter in the previous year, Sotera Health Co's ROA has generally decreased. In Q4 2022, the ROA was -7.49%, representing a decline from the positive ROA figures seen in the previous year's corresponding quarters.
The highest ROA in the data set was in Q2 2022 at 4.81%, but this was followed by a slight decrease in Q3 2022 and a further drop in Q4 2022. The recent fluctuations in ROA suggest that Sotera Health Co may be facing challenges in effectively utilizing its assets to generate profits.
In conclusion, the varying ROA figures highlight the importance of closely monitoring Sotera Health Co's asset management and profitability strategies to ensure sustained financial performance and long-term success.
Peer comparison
Dec 31, 2023