Ichor Holdings Ltd (ICHR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -10,895 | 85,823 | 81,014 | 41,552 | 14,977 |
| Total assets | US$ in thousands | 938,481 | 1,083,740 | 1,020,880 | 774,172 | 566,555 |
| Operating ROA | -1.16% | 7.92% | 7.94% | 5.37% | 2.64% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-10,895K ÷ $938,481K
= -1.16%
Ichor Holdings Ltd's operating return on assets (operating ROA) has fluctuated over the past five years. In 2019, the operating ROA was 2.64%, displaying a modest level of profitability generated from the company's operating activities. However, there was a noticeable increase in operating ROA in the following years, reaching 5.37% in 2020 and further improving to 7.94% in 2021.
Despite the positive trend, the operating ROA dropped slightly to 7.92% in 2022 before experiencing a significant decline to -1.16% in 2023. The negative operating ROA in 2023 could indicate operational inefficiencies or challenges faced by Ichor Holdings Ltd, resulting in a loss from its operating activities relative to its assets.
This fluctuation in operating ROA suggests varying levels of efficiency and profitability in utilizing the company's assets to generate operating income. Further analysis of the company's operational performance and asset management practices is recommended to identify underlying factors contributing to these shifts and to devise strategies for improving profitability and efficiency in the future.
Peer comparison
Dec 31, 2023