Cognex Corporation (CGNX)

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	115,065	96,954	96,027	122,745	130,702	172,310	181,696	181,662	246,229	248,412	295,936	323,376	315,101	317,666	326,754	228,031	170,529	129,051	75,508	133,406
Total assets	US$ in thousands	1,992,850	2,063,250	2,004,080	2,013,230	2,017,810	1,989,900	1,998,110	1,974,070	1,958,140	1,900,240	1,943,080	1,934,120	2,003,660	2,048,800	2,024,920	1,908,960	1,800,700	2,060,520	1,934,860	1,885,080
Operating ROA		5.77%	4.70%	4.79%	6.10%	6.48%	8.66%	9.09%	9.20%	12.57%	13.07%	15.23%	16.72%	15.73%	15.50%	16.14%	11.95%	9.47%	6.26%	3.90%	7.08%

December 31, 2024 calculation

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

Operating return on assets (operating ROA) is a key financial indicator that measures a company's ability to generate profits from its operating activities relative to its total assets. In the case of Cognex Corporation, the operating ROA has exhibited some fluctuations over the observed period.

From March 31, 2020, to June 30, 2022, Cognex's operating ROA showed a steady upward trend, increasing from 7.08% to a peak of 16.72%. This indicates an improvement in the company's efficiency in utilizing its assets to generate operating profits during this period.

However, starting from September 30, 2022, the operating ROA began to decline gradually, reaching 4.70% by the end of September 30, 2024. This downward trend may suggest potential challenges in maintaining profitability levels relative to the company's asset base.

Overall, while Cognex Corporation demonstrated significant improvements in operating ROA in the earlier periods, the recent downward trend underscores the importance of closely monitoring the company's asset management efficiency and profitability generation capabilities in the future.