Bio-Rad Laboratories Inc (BIO)

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	337,796	482,616	500,336	421,326	229,661
Total assets	US$ in thousands	12,299,100	13,501,700	17,799,400	12,972,600	8,008,860
Operating ROA		2.75%	3.57%	2.81%	3.25%	2.87%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $337,796K ÷ $12,299,100K
= 2.75%

Bio-Rad Laboratories Inc.'s operating return on assets (operating ROA) has experienced fluctuations over the past five years. In 2023, the operating ROA decreased to 2.75% from 3.57% in 2022, showing a decline in the company's ability to generate profit from its assets through operations. This decrease may be attributed to various factors impacting the company's operational efficiency and profitability.

Comparing the 2023 operating ROA to the figures from previous years, Bio-Rad Laboratories Inc.'s performance in 2023 is at a similar level as in 2021 when it was also at 2.75%. However, it is lower than in 2020 and 2019 when the operating ROA was 3.17% and 2.87% respectively. This trend indicates that the company's efficiency in generating profits from its assets has been inconsistent over the past five years.

It is important for Bio-Rad Laboratories Inc. to assess the reasons behind the fluctuating operating ROA and consider strategies to improve operational performance and asset utilization. By focusing on enhancing operational efficiency, cost control, and revenue generation, the company may be able to increase its operating ROA and enhance overall financial performance in the future.