IPG Photonics Corporation (IPGP)

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	231,973	169,500	367,883	198,659	233,793
Total assets	US$ in thousands	2,698,900	2,743,280	3,170,540	2,935,700	2,730,440
Operating ROA		8.60%	6.18%	11.60%	6.77%	8.56%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $231,973K ÷ $2,698,900K
= 8.60%

IPG Photonics Corp's operating return on assets (Operating ROA) has shown fluctuations over the past five years. In 2023, the company achieved an operating ROA of 8.58%, a slight increase from the previous year's 8.44%. However, this figure is lower compared to the higher levels seen in 2021 and 2019 when the operating ROA was 11.13% and 10.65% respectively.

The 2020 operating ROA of 7.89% was among the lowest in the period under consideration. This indicates that the company's ability to generate profits from its assets was weaker in 2020 relative to the surrounding years.

Overall, IPG Photonics Corp's operating ROA has demonstrated some variability, suggesting fluctuations in the efficiency of the company in generating profits from its assets. Further analysis and consideration of the company's operational strategies and market conditions may provide insights into the factors driving these fluctuations.