Ichor Holdings Ltd (ICHR)
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 | -7,640 | -10,895 | 85,823 | 81,014 | 41,552 |
| Total assets | US$ in thousands | 995,564 | 938,481 | 1,083,740 | 1,020,880 | 774,172 |
| Operating ROA | -0.77% | -1.16% | 7.92% | 7.94% | 5.37% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-7,640K ÷ $995,564K
= -0.77%
Ichor Holdings Ltd's operating return on assets (operating ROA) has exhibited fluctuations over the past five years.
In December 2020, the operating ROA stood at 5.37%, indicating that for every dollar of assets the company had, it generated a profit of 5.37 cents from its operations. This figure increased to 7.94% by the end of December 2021, showcasing an improvement in the company's operational efficiency and profitability.
However, in December 2022, the operating ROA remained relatively stable at 7.92%, suggesting that the company maintained its profitability level.
The downward trend became evident in December 2023, with the operating ROA dropping significantly to -1.16%. This negative figure indicates that the company's operating income was insufficient to cover the assets it was utilizing, raising concerns about its operational performance during that period.
By December 2024, the operating ROA remained negative at -0.77%, indicating a continued challenge for Ichor Holdings Ltd in generating profits from its assets.
It is essential for the company to closely monitor and address the factors contributing to the decline in operating ROA to improve operational efficiency and restore profitability to a sustainable level.
Peer comparison
Dec 31, 2024