IPG Photonics Corporation (IPGP)

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 -208,254 231,566 293,306 367,883 198,659
Total assets US$ in thousands 2,289,260 2,698,900 2,743,280 3,170,540 2,935,700
Operating ROA -9.10% 8.58% 10.69% 11.60% 6.77%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-208,254K ÷ $2,289,260K
= -9.10%

IPG Photonics Corporation's operating return on assets (Operating ROA) has exhibited varying trends over the past five years. From December 31, 2020, to December 31, 2022, the company experienced an improvement in operating ROA, with figures increasing from 6.77% to 10.69%. This suggests that the company was able to generate higher operating income relative to its total assets during this period.

However, there was a decline in the operating ROA in the following year, dropping to 8.58% by December 31, 2023. This reduction might indicate challenges or changes within the company's operations impacting its ability to generate profits from its assets efficiently.

Interestingly, by December 31, 2024, the operating ROA took a significant negative turn, reaching -9.10%. This sharp decrease raises concerns about the company's operational efficiency and profitability, as a negative ROA implies that the company's operating income was insufficient to cover its assets, resulting in operational losses.

Overall, IPG Photonics Corporation's operating ROA has shown fluctuations over the specified period, with both positive and negative shifts. It is essential for stakeholders to closely monitor these changes and evaluate the company's operational performance and asset utilization to ensure sustainable profitability and efficiency.