Azenta Inc (AZTA)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -73,126 | -24,735 | -31,089 | -36,600 | -47,431 |
| Total assets | US$ in thousands | 2,885,720 | 3,716,120 | 1,819,510 | 1,559,260 | 1,516,000 |
| Operating ROA | -2.53% | -0.67% | -1.71% | -2.35% | -3.13% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-73,126K ÷ $2,885,720K
= -2.53%
Azenta Inc's operating return on assets (ROA) is a key ratio used to assess the company's profitability and efficiency in utilizing its assets to generate operating income. The trend of Azenta Inc's operating ROA over the past five years reflects significant variability, indicating fluctuations in the company's operating performance.
In 2023, Azenta Inc's operating ROA stands at -3.02%, indicating that the company's operating income generated from its assets is negative. This implies that the company's operating expenses and costs are outpacing its operating income generation, resulting in an inefficient utilization of assets to generate profits. This signifies a concerning decline in the company's profitability and operational efficiency.
Comparatively, in 2022 and 2021, Azenta Inc's operating ROA also remained negative at -0.65% and -1.69% respectively, suggesting consistent challenges in generating positive operating income relative to its total assets. These consecutive negative figures over the past three years highlight a prolonged period of operational inefficiency and underperformance.
In contrast, in 2020 and 2019, Azenta Inc's operating ROA was positive at 5.12% and 3.16% respectively, indicating a relatively efficient utilization of assets to generate operating income. The positive operating ROA figures in these years suggest that the company was successful in generating a positive operating income relative to its total assets, implying a higher level of operational efficiency and profitability.
Overall, the trend of Azenta Inc's operating ROA reflects a concerning decline in profitability and operational efficiency in recent years, as indicated by the notable negative figures. Investors and stakeholders should monitor the company's efforts to improve its operational performance and effectively utilize its assets to generate positive operating income in order to ensure sustained profitability and long-term success.
Peer comparison
Sep 30, 2023