Cirrus Logic Inc (CRUS)

Operating return on assets (Operating ROA)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Operating income	US$ in thousands	410,359	343,466	249,031	366,338	237,182
Total assets	US$ in thousands	2,327,070	2,231,580	2,063,970	2,123,400	1,830,610
Operating ROA		17.63%	15.39%	12.07%	17.25%	12.96%

March 31, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $410,359K ÷ $2,327,070K
= 17.63%

Cirrus Logic Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. As of March 31, 2021, the operating ROA stood at 12.96%, indicating that the company generated $0.1296 in operating income for every dollar of assets it owned.

The operating ROA increased to 17.25% by March 31, 2022, reflecting improved operational efficiency and asset utilization. This suggests that the company was able to generate $0.1725 in operating income for each dollar of assets during that period.

However, by March 31, 2023, the operating ROA declined to 12.07%, indicating a decrease in the company's ability to generate operating income relative to its assets. This could be a result of various factors such as lower sales, increased operating expenses, or inefficient asset management.

The trend reversed in the following years as the operating ROA increased to 15.39% by March 31, 2024, and further improved to 17.63% by March 31, 2025. These increments suggest that Cirrus Logic Inc managed to enhance its operational performance and asset productivity, leading to higher returns on its assets.

Overall, the fluctuation in Cirrus Logic Inc's operating ROA over the period indicates varying levels of efficiency in utilizing its assets to generate operating income. The company's ability to sustain and improve its operating ROA reflects its operational effectiveness and management's ability to optimize asset utilization for profitability.