Cognex Corporation (CGNX)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	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	142,602	142,602	142,602	142,602
Total assets	US$ in thousands	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	1,885,940	1,390,450	1,349,920	1,353,770
Operating ROA		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%	7.56%	10.26%	10.56%	10.53%

December 31, 2023 calculation

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

Cognex Corp.'s operating return on assets (operating ROA) has shown a decline over the past eight quarters, from 16.72% in Q1 2022 to 6.08% in Q4 2023. This indicates that the company's ability to generate operating income from its assets has weakened over time. The downward trend in operating ROA suggests that Cognex may be facing challenges in effectively utilizing its assets to generate profits. It is important for the company to closely evaluate its operational efficiency and asset utilization strategies to improve its operating ROA and drive sustainable profitability in the future.