Fulgent Genetics Inc (FLGT)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands -73,918 -88,670 -71,377 -72,269 -75,295 -80,986 -80,638 -42,254 184,503 371,941 530,652 610,964 675,953 751,002 655,252 558,994 290,158 63,840 1,826 -519
Total assets US$ in thousands 1,219,960 1,233,760 1,232,240 1,229,880 1,273,110 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
Operating ROA -6.06% -7.19% -5.79% -5.88% -5.91% -5.96% -5.95% -3.07% 13.31% 26.46% 36.30% 41.69% 52.86% 62.34% 62.41% 55.95% 41.42% 25.81% 1.90% -0.58%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-73,918K ÷ $1,219,960K
= -6.06%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profits from its assets. Looking at the data provided for Fulgent Genetics Inc, we see significant fluctuations in the operating ROA over the period from March 31, 2020, to December 31, 2024.

- The company experienced a negative operating ROA of -0.58% on March 31, 2020, indicating that it had a profit margin deficiency relative to its total assets.
- However, the operating ROA improved to 1.90% by June 30, 2020, showing a positive trend in utilizing assets efficiently to generate operating income.
- Subsequently, there was a substantial increase in operating ROA to 25.81% by September 30, 2020, indicating a significant improvement in profitability relative to asset utilization.
- The trend continued to be positive, with operating ROA reaching its peak at 62.41% on June 30, 2021, showing the company's effectiveness in generating profits from its assets.
- However, after reaching its peak, the operating ROA started to decline gradually, with a decreasing trend observed from March 31, 2022, to December 31, 2024, where it stood at -6.06%.
- The negative operating ROA values from March 31, 2023, to December 31, 2024, suggest that the company may not be generating sufficient operating profits with its current asset base, possibly indicating operational challenges or inefficiencies.

In summary, Fulgent Genetics Inc's operating ROA exhibited both positive and negative trends over the period analyzed, indicating fluctuations in the company's ability to generate operating profits in relation to its assets. It is essential for stakeholders to closely monitor these fluctuations and assess the underlying reasons contributing to the changes in the operating ROA to make informed investment or strategic decisions.