Fulgent Genetics Inc (FLGT)

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 -195,529 -80,960 -80,822 -48,230 178,527 365,939 524,860 610,964 675,953 751,002 655,252 558,994 290,158 63,840 1,826 -519 -428 -1,048 -3,403 -4,699
Total assets US$ in thousands 1,235,330 1,358,400 1,354,580 1,376,770 1,386,050 1,405,780 1,461,660 1,465,590 1,278,720 1,204,670 1,049,860 999,083 700,461 247,311 95,915 89,325 88,756 61,145 56,436 55,652
Operating ROA -15.83% -5.96% -5.97% -3.50% 12.88% 26.03% 35.91% 41.69% 52.86% 62.34% 62.41% 55.95% 41.42% 25.81% 1.90% -0.58% -0.48% -1.71% -6.03% -8.44%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-195,529K ÷ $1,235,330K
= -15.83%

Fulgent Genetics Inc's operating return on assets (operating ROA) has exhibited a downward trend over the past few quarters, reflecting a decline in the company's ability to generate operating income from its assets. In Q4 2023, the operating ROA stood at -6.10%, indicating that the company incurred an operating loss relative to its asset base. This marks a continuation of the negative operating ROA observed in the previous three quarters, suggesting persistent operational challenges.

Comparing the recent performance to previous periods, Fulgent Genetics Inc's operating ROA was notably higher in the corresponding quarter of 2022, at 13.09%, before experiencing significant declines. The peak operating ROA of 41.69% in Q1 2022 underscores a period of strong operational efficiency and profitability for the company.

The substantial decrease in operating ROA since Q1 2022 suggests that Fulgent Genetics Inc may be facing difficulties in effectively utilizing its assets to generate operating income. Investors and stakeholders may be concerned about the company's operational performance and its ability to improve profitability moving forward. Further analysis of the company's financial and operational strategies may be necessary to address the challenges impacting its operating ROA.