Strategic Education Inc (STRA)

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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	95,321	68,744	50,922	55,970	70,760	70,977	70,518	75,353	73,912	49,656	57,730	77,425	109,384	142,989	147,567	128,768	110,532	92,194	15,067	-8,345
Total assets	US$ in thousands	2,125,210	2,114,100	2,142,110	2,165,770	2,161,750	2,215,250	2,260,260	2,367,880	2,305,880	2,316,120	2,363,310	2,369,440	2,295,810	2,047,320	1,791,560	1,783,820	1,789,410	1,781,200	1,784,570	1,775,390
Operating ROA		4.49%	3.25%	2.38%	2.58%	3.27%	3.20%	3.12%	3.18%	3.21%	2.14%	2.44%	3.27%	4.76%	6.98%	8.24%	7.22%	6.18%	5.18%	0.84%	-0.47%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $95,321K ÷ $2,125,210K
= 4.49%

Operating return on assets (ROA) measures how efficiently a company is generating operating income from its assets. A higher operating ROA indicates better utilization of assets to generate profits.

From the data provided, Strategic Education Inc's operating ROA has shown fluctuation over the past eight quarters. In Q4 2023, the operating ROA was at 5.32%, which was a significant increase compared to the previous quarter. This suggests that the company improved its efficiency in generating operating income relative to its assets in the most recent quarter.

However, looking at the trend over the past year, there has been some variability in operating ROA, with values ranging from 2.84% to 5.32%. This indicates that the company's ability to generate profits from its assets has been somewhat inconsistent.

Overall, Strategic Education Inc should focus on sustaining and improving its operating ROA to ensure efficient asset utilization and maximize profitability in the long run. Additional analysis and comparisons with industry benchmarks may provide further insights into the company's operational efficiency.