Harmonic Inc (HLIT)

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 63,136 22,172 45,519 18,809 -11,024
Total assets US$ in thousands 796,506 768,206 710,018 693,686 591,523
Operating ROA 7.93% 2.89% 6.41% 2.71% -1.86%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $63,136K ÷ $796,506K
= 7.93%

Operating return on assets (ROA) is a key financial ratio that indicates the efficiency of a company in generating operating profits relative to its total assets. Analyzing the trend in Harmonic Inc's operating ROA from 2020 to 2024 reveals fluctuations in the company's operational efficiency.

In 2020, Harmonic Inc experienced a negative operating ROA of -1.86%, indicating that the company's operating income was insufficient to cover its asset base, potentially signaling operational challenges or inefficiencies.

However, the company's performance improved significantly in 2021, with the operating ROA increasing to 2.71%, suggesting enhanced operational profitability relative to its asset utilization.

The positive trend continued in 2022, as Harmonic Inc's operating ROA further rose to 6.41%, indicating an even more efficient utilization of assets to generate operating income.

In 2023, there was a slight decrease in the operating ROA to 2.89%, possibly indicating a minor dip in operational efficiency, although the ratio remained positive overall.

By the end of 2024, Harmonic Inc's operating ROA surged to 7.93%, showcasing a notable improvement in the company's ability to generate operating profits from its asset base.

Overall, the fluctuating trend in Harmonic Inc's operating ROA over the years reflects varying levels of operational efficiency and profitability, with the company demonstrating a positive trajectory towards enhancing its effectiveness in utilizing assets to drive operating income.