FormFactor Inc (FORM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 64,780 | 82,756 | 54,912 | 98,038 | 83,788 |
| Total assets | US$ in thousands | 1,146,220 | 1,106,790 | 1,008,230 | 1,020,520 | 963,217 |
| Operating ROA | 5.65% | 7.48% | 5.45% | 9.61% | 8.70% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $64,780K ÷ $1,146,220K
= 5.65%
FormFactor Inc's operating return on assets (Operating ROA) shows a fluctuating trend over the period from December 31, 2020, to December 31, 2024.
- In December 2020, the Operating ROA stood at 8.70%, indicating that the company generated 8.70 cents of operating income for every dollar of assets employed.
- By December 2021, FormFactor Inc managed to improve its Operating ROA to 9.61%, suggesting increased efficiency in asset utilization and profitability.
- However, in December 2022, there was a notable decline in the Operating ROA to 5.45%, indicating a decrease in operating income generated for each dollar of assets. This may raise concerns about the company's operational performance and asset efficiency.
- The Operating ROA showed a slight recovery in December 2023, reaching 7.48%, but remained below the 2021 level.
- By December 2024, the Operating ROA fell further to 5.65%, potentially signaling ongoing challenges in effectively utilizing assets to generate operating income.
Overall, the fluctuating trend in FormFactor Inc's Operating ROA suggests varying levels of efficiency in generating operating income relative to the company's asset base during the specified period. It is important for the company to closely monitor and address factors impacting its Operating ROA to enhance overall operational performance and profitability.
Peer comparison
Dec 31, 2024