Calix Inc (CALX)
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 | 25,585 | 52,610 | 73,938 | 36,846 | -15,401 |
| Total assets | US$ in thousands | 941,865 | 884,835 | 742,032 | 427,352 | 316,823 |
| Operating ROA | 2.72% | 5.95% | 9.96% | 8.62% | -4.86% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $25,585K ÷ $941,865K
= 2.72%
Calix Inc's operating return on assets (operating ROA) has exhibited variability over the past five years. The trend shows a peak in Dec 31, 2021, with a significant operating ROA of 9.86%, followed by a slight decrease in Dec 31, 2022, to 5.95%. This decline continued into Dec 31, 2023, with a further reduction in operating ROA to 2.72%. It is important to note that in Dec 31, 2020, and Dec 31, 2019, the operating ROA was 10.09% and -4.08% respectively.
The positive operating ROA values in 2020 and 2019 indicate that the company was generating profits from its operating activities relative to its assets. However, the negative operating ROA in Dec 31, 2019 suggests an inefficient utilization of assets to generate profits.
The declining trend in operating ROA from 2021 to 2023 may indicate potential inefficiencies in the company's operations or a decrease in profitability relative to its asset base. It is essential for Calix Inc to further analyze the factors contributing to this decline and implement strategies to improve operational efficiency and profitability in order to enhance its overall financial performance.
Peer comparison
Dec 31, 2023