Digi International Inc (DGII)

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	50,265	50,095	53,497	50,995	46,384	38,220	24,623	18,667	14,473	10,528	12,463	11,300	11,654	11,317	8,204	6,970	4,031	10,072	9,503	10,306
Total assets	US$ in thousands	828,662	835,531	840,060	847,748	854,610	853,895	863,639	869,530	866,230	619,531	613,051	607,503	528,788	528,682	526,869	554,752	560,904	398,698	385,246	383,535
Operating ROA		6.07%	6.00%	6.37%	6.02%	5.43%	4.48%	2.85%	2.15%	1.67%	1.70%	2.03%	1.86%	2.20%	2.14%	1.56%	1.26%	0.72%	2.53%	2.47%	2.69%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $50,265K ÷ $828,662K
= 6.07%

Digi International, Inc.'s operating return on assets (operating ROA) has shown a consistent upward trend over the past quarters. The operating ROA increased from 2.17% in Q2 2022 to 6.07% in Q1 2024, indicating an improvement in the company's ability to generate operating income from its assets.

This positive trend suggests that Digi International has been more efficient in utilizing its assets to generate operating profits. The steady growth in operating ROA reflects increasing profitability in relation to the company's asset base, which is a positive indicator of operational efficiency and overall financial performance.

The improvement in operating ROA over the quarters signifies that Digi International has been successful in enhancing its operational effectiveness, possibly through cost control measures, revenue growth, or improved asset utilization. This consistent increase in operating ROA demonstrates the company's ability to generate earnings from its operational activities and indicates a potential positive outlook for the company's profitability and operational performance in the future.