Cytek Biosciences Inc (CTKB)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Operating income	US$ in thousands	-27,845	-1,804	9,157
Total assets	US$ in thousands	494,457	519,476	463,305
Operating ROA		-5.63%	-0.35%	1.98%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-27,845K ÷ $494,457K
= -5.63%

Cytek Biosciences Inc's operating return on assets (operating ROA) has shown a declining trend over the past three years. In 2021, the company achieved a positive operating ROA of 1.98%, indicating that for every dollar of assets, the company generated a return on its operations. However, this performance deteriorated significantly in 2022, with the operating ROA decreasing to -0.35%. This suggests that the company's operating income from its assets was insufficient to cover its operational expenses during that year.

The situation worsened further in 2023, as the operating ROA fell to -5.63%. This negative value implies that the company's operating income was not sufficient to generate a positive return on its assets, raising concerns about its operational efficiency and profitability.

Overall, Cytek Biosciences Inc's operating ROA has been deteriorating, indicating that the company may be facing challenges in effectively utilizing its assets to generate profits from its core business operations. Management may need to consider strategic initiatives to improve operational performance and efficiency to reverse this negative trend.