IPG Photonics Corporation (IPGP)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	231,973	114,715	152,171	151,783	169,500	342,783	351,607	372,184	367,883	348,321	287,748	242,705	198,659	133,661	166,393	210,274	233,793	329,602	379,320	450,621
Total assets	US$ in thousands	2,698,900	2,672,860	2,696,420	2,671,160	2,743,280	2,962,520	3,048,770	3,098,470	3,170,540	3,143,910	3,086,510	2,982,950	2,935,700	2,794,930	2,758,740	2,680,130	2,730,440	2,730,900	2,737,420	2,628,740
Operating ROA		8.60%	4.29%	5.64%	5.68%	6.18%	11.57%	11.53%	12.01%	11.60%	11.08%	9.32%	8.14%	6.77%	4.78%	6.03%	7.85%	8.56%	12.07%	13.86%	17.14%

December 31, 2023 calculation

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

The operating return on assets (operating ROA) of IPG Photonics Corp has been fluctuating over the past eight quarters. In Q4 2023, the operating ROA was 8.58%, which was an increase from the previous quarter's 6.93%. This improvement indicates that the company generated higher operating income relative to its total assets compared to the previous quarter.

Although the operating ROA in Q4 2023 had improved, it was lower than the figures from the same quarter in the prior year (Q4 2022) and also lower than the averages recorded in Q3 2022 and Q2 2022. This suggests that IPG Photonics Corp might have experienced some challenges in maximizing its operating efficiency and profitability in the most recent quarter.

Overall, the trend of the operating ROA for IPG Photonics Corp has shown some volatility, with fluctuations in performance levels. It would be prudent for stakeholders to closely monitor the company's operational efficiency and asset utilization to ensure sustainable profitability in the future.