Cognex Corporation (CGNX)

Return on assets (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
Net income (ttm)	US$ in thousands	106,171	89,054	78,379	99,641	113,234	157,316	172,380	173,807	215,525	213,749	258,669	277,366	279,881	295,691	304,297	225,557	176,186	187,168	141,347	191,238
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
ROA		5.33%	4.32%	3.91%	4.95%	5.61%	7.91%	8.63%	8.80%	11.01%	11.25%	13.31%	14.34%	13.97%	14.43%	15.03%	11.82%	9.78%	9.08%	7.31%	10.14%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $106,171K ÷ $1,992,850K
= 5.33%

The return on assets (ROA) measures a company's efficiency in generating profits relative to its total assets. Looking at the data provided for Cognex Corporation, we can see fluctuations in the ROA over the period from March 31, 2020, to December 31, 2024.

The ROA started at 10.14% in March 2020 and reached a peak of 15.03% in June 2021. This indicates that the company was effectively utilizing its assets to generate profits during that period. However, the ROA started to decline gradually from September 2021 to December 2024, reaching its lowest point of 3.91% in June 2024 before slightly recovering to 5.33% by the end of December 2024.

The declining trend in ROA suggests that Cognex Corporation may be facing challenges in maintaining profitability relative to its asset base during the latter part of the period under review. It could be due to various factors such as increasing costs, lower sales, changes in market conditions, or inefficient asset utilization.

Overall, monitoring the ROA trend is crucial for understanding how effectively Cognex Corporation is managing its assets to generate profits and whether adjustments are needed to improve its operational efficiency and financial performance in the future.