Digi International Inc (DGII)

Operating return on assets (Operating ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Operating income	US$ in thousands	48,089	50,095	38,220	10,528	11,317
Total assets	US$ in thousands	815,075	835,531	853,895	619,531	528,682
Operating ROA		5.90%	6.00%	4.48%	1.70%	2.14%

September 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $48,089K ÷ $815,075K
= 5.90%

Digi International Inc's operating return on assets (ROA) has exhibited fluctuations over the past five years. The company's operating ROA decreased from 2.14% in 2020 to 1.70% in 2021, indicating a decline in the company's profitability relative to its assets during that period. However, there was a notable improvement in operating ROA in 2022, which increased to 4.48%. This improvement suggests that the company was able to generate a higher operating income relative to its assets in that year.

In the subsequent years, the operating ROA continued to vary, with a slight decrease to 6.00% in 2023 and a further decline to 5.90% in 2024. While the operating ROA in 2024 was lower than the previous year, it remained relatively higher compared to the levels seen in 2021 and 2020.

Overall, the trend in Digi International Inc's operating ROA indicates some level of volatility, with fluctuations in profitability relative to its asset base. Further analysis of the company's operational efficiency, asset management, and overall financial performance may provide additional insights into the factors driving these fluctuations in operating ROA.