Exelixis Inc (EXEL)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	170,885	201,484	286,666	110,060	369,470
Total assets	US$ in thousands	2,942,360	3,071,490	2,616,240	2,137,330	1,885,670
Operating ROA		5.81%	6.56%	10.96%	5.15%	19.59%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $170,885K ÷ $2,942,360K
= 5.81%

Exelixis Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. The trend indicates a decline in operating ROA from 2019 to 2020, followed by an increase in 2021 before declining again in 2022 and 2023.

In 2019, the operating ROA was relatively high at 19.59%, indicating that the company was generating strong operating income relative to its assets. However, in 2020, the operating ROA dropped significantly to 5.15%, suggesting a decline in operational efficiency or profitability.

The company managed to improve its operating ROA in 2021 to 10.96%, indicating a recovery in operating performance. However, this improvement was not sustained as the operating ROA decreased to 6.56% in 2022 and further dropped to 5.81% in 2023.

The fluctuation in operating ROA over the years suggests that Exelixis Inc may be facing challenges in effectively utilizing its assets to generate operating income. It is essential for the company to closely monitor and analyze the factors influencing its operating ROA to identify areas for improvement and enhance overall financial performance.