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.
Peer comparison
Dec 31, 2024