EPAM Systems Inc (EPAM)

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	501,239	549,222	615,421	564,095	572,966	568,156	532,053	564,307	542,316	488,642	440,914	399,066	379,324	352,076	336,245	325,701	302,850	296,375	280,370	261,725
Total assets	US$ in thousands	4,352,360	4,162,270	4,093,700	4,071,340	4,009,150	3,735,600	3,563,960	3,507,570	3,523,230	3,242,230	2,961,620	2,780,540	2,721,330	2,555,420	2,389,130	2,311,880	2,244,210	2,040,160	1,931,450	1,831,440
Operating ROA		11.52%	13.20%	15.03%	13.86%	14.29%	15.21%	14.93%	16.09%	15.39%	15.07%	14.89%	14.35%	13.94%	13.78%	14.07%	14.09%	13.49%	14.53%	14.52%	14.29%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $501,239K ÷ $4,352,360K
= 11.52%

To analyze EPAM Systems Inc's operating return on assets (operating ROA), we can observe a trend in the operating ROA ratios over the past eight quarters.

EPAM Systems Inc's operating ROA has shown fluctuations over the analyzed period. The operating ROA ranged from 12.11% to 16.09%, with the highest value of 16.09% recorded in Q1 2022 and the lowest value of 12.11% in Q4 2023. This indicates some variability in the company's ability to generate operating profits relative to its total assets.

The average operating ROA for EPAM Systems Inc over the eight quarters is approximately 14.27%. This suggests that, on average, the company generated operating profits equal to 14.27% of its total assets.

The decreasing trend in operating ROA from Q1 2022 to Q4 2023 may raise concerns about the company's operational efficiency and asset utilization. Investors and stakeholders may want to further investigate the factors contributing to this decline and assess the company's strategies for improving its operating performance.

Overall, while EPAM Systems Inc's operating ROA has exhibited some variability, further analysis of the company's financial and operational performance is warranted to gain a more comprehensive understanding of its profitability and efficiency over time.