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.