Cognex Corporation (CGNX)

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	130,702	246,229	315,101	170,529	142,602
Total assets	US$ in thousands	2,017,810	1,958,140	2,003,660	1,800,700	1,885,940
Operating ROA		6.48%	12.57%	15.73%	9.47%	7.56%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $130,702K ÷ $2,017,810K
= 6.48%

Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. In the case of Cognex Corp., the trend of operating ROA over the past five years has shown some fluctuations.

In 2023, Cognex Corp.'s operating ROA was 6.08%, a considerable decline from 2022 where it stood at 13.72%. This significant drop suggests a lower efficiency in generating operating income from its assets during the year. Further analysis is needed to understand the underlying reasons for this decline.

Prior to 2023, Cognex Corp. demonstrated a relatively strong performance in terms of operating ROA. In 2021, the company achieved an operating ROA of 15.73%, the highest value in the given period, indicating a high level of operating income generated per dollar of assets employed. The trend continued in 2022 with an operating ROA of 13.72%, showing a solid performance in utilizing its assets efficiently to generate operating returns.

Looking back to 2020 and 2019, Cognex Corp.'s operating ROA was 11.44% and 7.56%, respectively. These figures indicate a steady improvement in the company's operational performance over the years, reflecting better utilization of assets to generate operating income.

Overall, while the 2023 operating ROA figure for Cognex Corp. seems to have decreased significantly compared to the previous year, the company had demonstrated a generally positive trend in operating efficiency and asset utilization in the years leading up to 2023. Further investigation into the company's operations and financial management practices would be necessary to understand the factors influencing its operating ROA performance.