Gen Digital Inc. (GEN)

Operating return on assets (Operating ROA)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Operating income	US$ in thousands	1,122,000	1,227,000	1,005,000	896,000	355,000
Total assets	US$ in thousands	15,772,000	15,947,000	6,943,000	6,361,000	7,735,000
Operating ROA		7.11%	7.69%	14.48%	14.09%	4.59%

March 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,122,000K ÷ $15,772,000K
= 7.11%

Operating ROA is a key profitability ratio that indicates the efficiency of Gen Digital Inc. in generating operating income from its assets. The trend of Gen Digital Inc.'s operating ROA over the past five years has shown fluctuations:

- In the current year ending March 31, 2024, the operating ROA decreased to 7.11% from 7.69% in the previous year. This decline suggests a slight decrease in the company's ability to generate operating income relative to its assets.

- A similar trend was observed in the previous year, as the operating ROA decreased from 14.48% in March 2022 to 14.09% in March 2023. However, the percentage change was relatively small compared to the recent year.

- In March 2022, Gen Digital Inc. experienced a significant increase in operating ROA to 14.48% from 14.09% in March 2021. This spike indicates improved efficiency in utilizing its assets to generate operating income.

- The operating ROA in March 2021 was slightly lower at 14.09% compared to the previous year. Nevertheless, the figure remained relatively high, signifying consistent profitability.

- The operating ROA in March 2020 was the lowest in the five-year period at 4.59%. This indicates that during that period, Gen Digital Inc. was less efficient in generating operating income from its assets.

Overall, the trend in Gen Digital Inc.'s operating ROA highlights some fluctuations, with periods of both increase and decrease. Further analysis of the company's operating performance and asset utilization efficiency is recommended to understand the factors contributing to these changes.