FormFactor Inc (FORM)
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 | 82,756 | 54,912 | 98,038 | 83,788 | 49,662 |
| Total assets | US$ in thousands | 1,106,790 | 1,008,230 | 1,020,520 | 963,217 | 839,882 |
| Operating ROA | 7.48% | 5.45% | 9.61% | 8.70% | 5.91% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $82,756K ÷ $1,106,790K
= 7.48%
FormFactor Inc's operating return on assets (operating ROA) has fluctuated over the past five years, demonstrating varying levels of efficiency in generating profits from its assets. In 2023, the operating ROA was 7.48%, an increase compared to the previous year's 5.45%. This indicates an improvement in the company's ability to generate operating income from its assets.
However, the operating ROA in 2023 is lower than the levels seen in 2021 and 2020, which were 9.61% and 8.70% respectively. This suggests a slight decrease in efficiency in utilizing its assets to generate operating profits compared to those years.
Overall, FormFactor Inc's operating ROA performance indicates a mixed trend over the past five years, with some years showing better asset utilization for operating income generation compared to others. Continued monitoring and analysis of this ratio will be essential to understand the company's operational efficiency and profitability going forward.
Peer comparison
Dec 31, 2023