US Physicalrapy Inc (USPH)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 52,061 | 56,801 | 70,649 | 52,413 | 67,425 |
| Total assets | US$ in thousands | 997,238 | 858,154 | 749,426 | 594,361 | 630,501 |
| Operating ROA | 5.22% | 6.62% | 9.43% | 8.82% | 10.69% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $52,061K ÷ $997,238K
= 5.22%
Based on the data provided, the operating return on assets (operating ROA) for U.S. Physical Therapy, Inc. has exhibited a downward trend over the past five years. The operating ROA decreased from 12.03% in 2019 to 6.97% in 2023. This decline indicates that the company's ability to generate operating income from its assets has weakened over this period.
A lower operating ROA could imply inefficiencies in asset utilization or declining operating profitability relative to the size of assets employed. This downward trend might be a cause for concern as it suggests a potential decrease in the company's operational effectiveness or profitability compared to the resources invested in its operations.
Further analysis would be necessary to understand the specific factors contributing to this declining trend in U.S. Physical Therapy, Inc.'s operating return on assets and to assess the implications for the company's financial performance and overall health.
Peer comparison
Dec 31, 2023