United Therapeutics Corporation (UTHR)
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 | 1,184,900 | 979,700 | 555,900 | 593,600 | -187,600 |
| Total assets | US$ in thousands | 7,167,000 | 6,044,500 | 5,169,100 | 4,615,000 | 3,913,400 |
| Operating ROA | 16.53% | 16.21% | 10.75% | 12.86% | -4.79% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,184,900K ÷ $7,167,000K
= 16.53%
United Therapeutics Corp's operating return on assets (operating ROA) has shown a varying trend over the past five years. In 2023, the company achieved an operating ROA of 16.53%, marking a slight increase from the previous year's 16.21%. This improvement indicates that the company generated $0.1653 in operating income for every dollar of assets deployed in its operations during 2023.
Comparing 2023 to 2021, there was a significant growth in operating ROA. In 2021, the operating ROA stood at 10.75%, showcasing an upward trajectory in operational efficiency. However, it is worth noting that in 2020, the operating ROA dipped to 12.86%, implying a temporary decrease in the company's ability to generate operating income from its assets compared to 2021.
The most notable improvement in operating ROA can be observed when comparing 2023 to 2019. In 2019, the company reported a negative operating ROA of -4.79%. This negative figure indicates inefficiency in asset utilization and operational performance. The subsequent recovery and positive growth in operating ROA over the following years demonstrate the company's efforts to enhance operational efficiency and generate higher returns from its assets.
Overall, United Therapeutics Corp's increasing trend in operating ROA from 2019 to 2023 reflects a positive trajectory in leveraging its assets to generate operating income efficiently. This performance metric provides insights into the company's operational effectiveness and its ability to maximize returns on the resources employed in its business activities.
Peer comparison
Dec 31, 2023