PC Connection Inc (CNXN)
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 | 103,153 | 99,118 | 98,835 | 108,534 | 120,551 | 127,948 | 123,537 | 112,531 | 96,517 | 84,971 | 78,720 | 65,544 | 72,074 | 81,918 | 93,478 | 115,213 | 111,972 | 108,686 | 94,999 | 87,623 |
| Total assets | US$ in thousands | 1,188,380 | 1,181,430 | 1,164,280 | 1,118,060 | 1,099,830 | 1,134,120 | 1,123,630 | 1,100,820 | 1,083,380 | 1,013,930 | 1,031,270 | 958,386 | 1,015,370 | 1,003,330 | 954,340 | 913,192 | 937,335 | 870,648 | 911,802 | 828,449 |
| Operating ROA | 8.68% | 8.39% | 8.49% | 9.71% | 10.96% | 11.28% | 10.99% | 10.22% | 8.91% | 8.38% | 7.63% | 6.84% | 7.10% | 8.16% | 9.80% | 12.62% | 11.95% | 12.48% | 10.42% | 10.58% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $103,153K ÷ $1,188,380K
= 8.68%
PC Connection, Inc. has shown a declining trend in its operating return on assets (ROA) over the past two years, with the operating ROA decreasing from 10.96% in Q4 2022 to 8.91% in Q4 2023. This indicates that the company's ability to generate operating profits from its assets has weakened. Additionally, the operating ROA has been consistently below 10% in the past few quarters, suggesting that the company may be facing challenges in efficiently utilizing its assets to generate operating income. Further analysis is recommended to identify the root causes of this decline and to develop strategies to improve the company's operating ROA.
Peer comparison
Dec 31, 2023