Veracyte Inc (VCYT)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 24,138 -74,404 -36,560 -75,563 -35,847
Total assets US$ in thousands 1,300,040 1,114,910 1,156,420 1,187,820 457,163
ROA 1.86% -6.67% -3.16% -6.36% -7.84%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $24,138K ÷ $1,300,040K
= 1.86%

The analysis of Veracyte Inc’s Return on Assets (ROA) over the period from December 31, 2020, to December 31, 2024, reveals notable fluctuations with a generally improving trend in recent years.

As of December 31, 2020, the company recorded a negative ROA of -7.84%, indicating that it was not generating sufficient profit relative to its asset base, and was likely experiencing operational challenges or investments in growth initiatives that had yet to translate into positive returns. This negative ROA persisted into 2021 and 2022, with the figures narrowing to -6.36% and -3.16%, respectively, suggesting a gradual improvement in asset utilization and profitability, although the company continued to operate at a loss.

In 2023, the ROA declined again to -6.67%, reversing some of the earlier gains and indicating a possible period of operational setbacks or increased expenses affecting net income adversely. Nevertheless, by December 31, 2024, the ROA turned positive, reaching 1.86%. This shift to positive territory marks a significant milestone, as it indicates that Veracyte Inc was able to generate net income from its total assets during that year, reflecting an improvement in efficiency and profitability.

Overall, the company's ROA trend from negative figures to a positive value underscores a trajectory of operational improvement and value creation. However, the relatively modest level of 1.86% indicates that the company is still in a recovery or growth phase, and its asset base is not yet generating substantial profitability relative to its assets. Continued positive ROA in forthcoming periods will be crucial to confirm sustained operational success and enhanced asset efficiency.