Concentrix Corporation (CNXC)

Operating return on assets (Operating ROA)

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021
Operating income	US$ in thousands	661,327	640,192	572,397
Total assets	US$ in thousands	12,491,800	6,669,770	5,046,370
Operating ROA		5.29%	9.60%	11.34%

November 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $661,327K ÷ $12,491,800K
= 5.29%

As an analyst, I have computed the operating return on assets (operating ROA) for Concentrix Corp. based on the provided data. The operating ROA measures the company's operating income generated for each dollar of assets it holds.

The trend in Concentrix Corp.'s operating ROA over the past five years shows fluctuations. The operating ROA decreased from 6.32% in 2019 to 5.96% in 2020, indicating a decline in the company's ability to generate operating income from its assets. However, there was a subsequent increase to 11.34% in 2021, suggesting a significant improvement in performance. This positive trend was followed by a decrease to 9.60% in 2022 and a further drop to 5.29% in 2023.

The declining trend observed in the last two years raises concerns about the company's ability to effectively utilize its assets to generate operating income. This may warrant further investigation into the company's operational efficiency, cost management, and overall asset utilization strategies. Moreover, the fluctuation in operating ROA underscores the importance of continuous monitoring and evaluation of the company's operational and financial performance.

In conclusion, while Concentrix Corp. has shown varying levels of operating ROA over the past five years, the recent downward trend raises potential concerns about the company's operational effectiveness in generating income from its asset base.