Digi International Inc (DGII)

Operating return on assets (Operating ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	50,095	38,220	10,528	11,317	10,072
Total assets	US$ in thousands	835,531	853,895	619,531	528,682	398,698
Operating ROA		6.00%	4.48%	1.70%	2.14%	2.53%

September 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $50,095K ÷ $835,531K
= 6.00%

To analyze the operating return on assets (operating ROA) of Digi International, Inc., we can observe the trend of this ratio over the past five years. The operating ROA measures the efficiency of the company in generating operating profits from its assets.

From the data provided, it is evident that the operating ROA has been trending upwards, increasing from 2.50% in 2019 to 6.00% in 2023. This indicates that the company has been more effective in generating operating profits relative to its total assets over the years.

The improvement in operating ROA suggests that Digi International, Inc. has been able to increase its operating profitability in relation to its asset base. This could be attributed to better management of assets, cost control measures, or improved operational efficiency.

Overall, the increasing trend in operating ROA reflects positively on the company's ability to generate operating profits from its assets, indicating potential improvements in operational efficiency and profitability.