Benchmark Electronics Inc (BHE)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	109,411	112,987	115,223	112,451	109,664	104,510	99,453	97,404	90,069	81,758	68,268	56,535	53,062	46,284	43,149	30,578	25,134	3,996	5,135	18,948
Total assets	US$ in thousands	2,139,460	2,149,000	2,154,740	2,212,810	2,274,760	2,333,140	2,307,460	2,278,650	2,227,330	2,276,510	2,166,780	2,002,560	1,903,880	1,840,370	1,818,790	1,760,750	1,744,240	1,734,510	1,758,040	1,823,380
Operating ROA		5.11%	5.26%	5.35%	5.08%	4.82%	4.48%	4.31%	4.27%	4.04%	3.59%	3.15%	2.82%	2.79%	2.51%	2.37%	1.74%	1.44%	0.23%	0.29%	1.04%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $109,411K ÷ $2,139,460K
= 5.11%

Operating Return on Assets (ROA) is a profitability ratio that measures how efficiently a company generates profits from its assets used in operations. In the case of Benchmark Electronics Inc, the operating ROA has shown a generally increasing trend over the period from March 31, 2020, to December 31, 2024.

Initially, the operating ROA was relatively low, starting at 1.04% on March 31, 2020, and gradually increasing to 2.37% by June 30, 2021. This improvement may indicate that the company was becoming more efficient in utilizing its assets to generate operating income during this period.

From June 30, 2021, to December 31, 2024, the operating ROA continued to exhibit a positive trend, reaching a peak of 5.35% on June 30, 2024. This consistent increase suggests that Benchmark Electronics Inc has been able to enhance its operational profitability and asset utilization over time, which is typically viewed favorably by investors and analysts.

However, there was a slight decline in the operating ROA in the subsequent periods, with a decrease to 5.11% on December 31, 2024. It is important for stakeholders to monitor such fluctuations to understand the reasons behind them and assess the company's operational efficiency and profitability sustainability.

Overall, the upward trajectory of Benchmark Electronics Inc's operating ROA indicates an improvement in operational performance and asset efficiency, reflecting positively on the company's ability to generate profits from its operating activities relative to its asset base.