US Physicalrapy Inc (USPH)
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 | 52,061 | 59,735 | 58,749 | 58,767 | 56,801 | 66,472 | 68,509 | 70,659 | 70,649 | 72,386 | 75,389 | 63,421 | 52,413 | 49,497 | 46,378 | 56,014 | 67,425 | 66,943 | 65,560 | 62,688 |
| Total assets | US$ in thousands | 997,238 | 1,010,190 | 999,581 | 868,127 | 858,154 | 799,708 | 796,444 | 763,863 | 749,426 | 630,098 | 749,426 | 749,426 | 594,361 | 575,438 | 585,018 | 594,361 | 630,501 | 560,845 | 560,845 | 523,087 |
| Operating ROA | 5.22% | 5.91% | 5.88% | 6.77% | 6.62% | 8.31% | 8.60% | 9.25% | 9.43% | 11.49% | 10.06% | 8.46% | 8.82% | 8.60% | 7.93% | 9.42% | 10.69% | 11.94% | 11.69% | 11.98% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $52,061K ÷ $997,238K
= 5.22%
U.S. Physical Therapy, Inc.'s operating return on assets (operating ROA) has shown a declining trend over the past quarters. The operating ROA decreased from 9.25% in Q1 2022 to 6.97% in Q4 2023. This indicates that the company's operating profitability relative to its total assets has been diminishing.
The company experienced a peak in its operating ROA in Q2 2022 at 9.25%, but since then, there has been a downward trajectory in the metric. The consecutive decrease in operating ROA from Q2 2022 to Q4 2023 might suggest challenges in generating operating profits from its assets efficiently.
It is essential for U.S. Physical Therapy, Inc. to closely examine its operational efficiency and asset utilization strategies to reverse the declining trend in its operating ROA. A low operating ROA could imply that the company is not effectively leveraging its assets to generate profits, highlighting the need for potential operational improvements or strategic adjustments to enhance profitability in the future.
Peer comparison
Dec 31, 2023