TG Therapeutics Inc (TGTX)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	41,929	20,633	-192,839	-344,770	-273,594
Total assets	US$ in thousands	577,690	329,587	193,572	379,629	625,642
Operating ROA		7.26%	6.26%	-99.62%	-90.82%	-43.73%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $41,929K ÷ $577,690K
= 7.26%

Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. It indicates how efficiently a company is utilizing its assets to generate profits before considering financing costs.

For TG Therapeutics Inc, the trend in Operating ROA over the years shows a significant improvement. In December 2020, the Operating ROA was at a negative 43.73%, indicating that the company was not effectively utilizing its assets to generate operating income. However, by December 2024, the Operating ROA had increased to 7.26%, showing a substantial improvement in asset utilization efficiency.

The negative Operating ROA figures in 2020, 2021, and 2022 suggest that the company was facing challenges in generating operating income relative to its asset base during those years. It is noteworthy that the Operating ROA improved dramatically in the subsequent years, turning positive in 2023 and 2024. This positive trend indicates that the company's asset management and operating performance have enhanced, resulting in better returns generated from its assets.

Overall, the improvement in TG Therapeutics Inc's Operating ROA from negative values to positive figures over the years reflects a positive development in the company's operational efficiency and profitability. It suggests that the company has managed to enhance its asset utilization and operating income generation, which is beneficial for its financial health and future growth prospects.