Hologic Inc (HOLX)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 668,400 | 1,640,200 | 2,480,300 | 1,105,000 | -123,800 |
| Total assets | US$ in thousands | 9,139,300 | 9,071,200 | 8,919,900 | 7,195,800 | 6,442,100 |
| Operating ROA | 7.31% | 18.08% | 27.81% | 15.36% | -1.92% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $668,400K ÷ $9,139,300K
= 7.31%
To analyze Hologic, Inc.'s operating return on assets (operating ROA) over the past five years, we observe a declining trend from 27.84% in 2021 to 10.30% in 2023. This decrease signifies a reduction in the company's ability to generate operating profits from its assets.
The decline in operating ROA may indicate inefficiencies in the utilization of the company's assets to generate operating income. This could be a result of increased operating expenses, reduced operating income, or a combination of both.
Furthermore, a decreasing operating ROA may also reflect declining profitability in relation to the company's asset base. This trend warrants a closer examination of the company's operational performance, cost management, and overall asset efficiency.
It is important for stakeholders to closely monitor the factors contributing to this declining trend in operating ROA to assess the company's operational efficiency and profitability.
Peer comparison
Sep 30, 2023