Cognex Corporation (CGNX)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	115,065	130,702	246,229	315,101	170,529
Total assets	US$ in thousands	1,992,850	2,017,810	1,958,140	2,003,660	1,800,700
Operating ROA		5.77%	6.48%	12.57%	15.73%	9.47%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $115,065K ÷ $1,992,850K
= 5.77%

The Operating Return on Assets (Operating ROA) is a key financial metric that indicates the efficiency of Cognex Corporation in generating profits from its operating assets.

From the data provided, we observe fluctuations in Cognex Corporation's Operating ROA over the years:
- As of December 31, 2020, the Operating ROA was 9.47%, reflecting a decent profitability from its operating assets.
- By December 31, 2021, the Operating ROA improved significantly to 15.73%, indicating better utilization of assets to generate operating income.
- However, by December 31, 2022, the Operating ROA declined to 12.57%, which could suggest a slight decrease in efficiency in generating profits from assets.
- The trend continued with a further drop in Operating ROA to 6.48% by December 31, 2023, indicating potential challenges in asset utilization.
- Finally, as of December 31, 2024, the Operating ROA decreased to 5.77%, signaling a continued decline in the company's ability to generate operating income relative to its assets.

Overall, the fluctuating trend in Cognex Corporation's Operating ROA highlights the importance of closely monitoring asset efficiency and profitability, as lower Operating ROA figures may indicate potential operational challenges that need to be addressed to improve the company's financial performance.