Veracyte Inc (VCYT)

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 16,142 -85,795 -41,081 -81,903 -35,389
Total assets US$ in thousands 1,300,040 1,114,910 1,156,420 1,187,820 457,163
Operating ROA 1.24% -7.70% -3.55% -6.90% -7.74%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $16,142K ÷ $1,300,040K
= 1.24%

The operating return on assets (operating ROA) of Veracyte Inc. has demonstrated notable fluctuations over the specified period. As of December 31, 2020, the operating ROA was recorded at -7.74%, indicating that the company was operating at a loss relative to its asset base. This negative ratio persisted into December 31, 2021, albeit with an improvement to -6.90%, suggesting a slight reduction in operating losses relative to assets.

By the end of 2022, the operating ROA improved further to -3.55%, reflecting continued progress toward a more efficient utilization of assets in generating operating income. However, this upward trend was not maintained in subsequent years. At December 31, 2023, the operating ROA declined sharply again to -7.70%, reversing the prior gains and indicating a deterioration in operating efficiency or profitability related to asset utilization.

In a notable turnaround, the operating ROA turned positive by December 31, 2024, reaching 1.24%. This transition into positive territory signifies that Veracyte Inc. was able to generate operating income exceeding its asset base during this period, representing a significant improvement in operational performance and asset utilization efficiency relative to previous years. Overall, the trend suggests periods of progressive recovery interrupted by setbacks, culminating in a positive operating ROA at the end of 2024, reflecting potentially improved operational strategies or market conditions.